Contingency Fees: You Only Pay If You Win

Most disability attorneys charge a contingency fee, which means that they receive a percentage of your back pay (the Social Security benefits you are owed retroactively from the date you applied). The standard fee is 25% of your back pay or $6,000, whichever is lower. Here’s how it works:

• 25% of your back pay: The attorney’s fee is based on your back pay, which is the amount Social Security owes you from the date you applied until the time you are approved for benefits.
• $6,000 limit: Regardless of how much back pay you are awarded, the attorney’s fee will not exceed $6,000. For example, if you are awarded $30,000 in back pay, the attorney’s fee would be $6,000, not 25% of $30,000.
• No upfront costs: Since the attorney’s fee is contingent on winning your case, you do not need to pay anything upfront. If your claim is denied or you are not awarded back pay, you don’t owe the attorney any fees.

What is Covered by the Attorney’s Fee?

The attorney's fee typically covers the entire process of handling your case, including:

• Initial consultation: The attorney will usually offer a free consultation to discuss your case and determine whether you have a valid claim.
• Reviewing your medical records: The attorney will gather and review your medical evidence to build a strong case for disability benefits.
• Filing the claim and paperwork: The attorney will help you fill out the necessary forms, submit them to the SSA, and ensure everything is completed accurately.
• Appeals process (if needed): If your claim is denied and you need to appeal, the attorney will represent you during the appeals process, which may include a hearing before an Administrative Law Judge (ALJ).

Expenses Outside of Attorney Fees

While the attorney’s fee is typically covered by a contingency arrangement, there may be additional expenses that you are responsible for. These expenses can include:

• Medical record costs: Obtaining medical records and other supporting documentation might incur fees, such as for copying or mailing.
• Expert witness fees: If your case requires expert testimony (e.g., a medical expert to explain your disability), you may need to pay for these services.
• Court costs: In some cases, there might be filing fees for appeals or hearings.

Your attorney should explain any potential out-of-pocket expenses ahead of time, so you aren’t surprised by any additional costs.

When Will You Pay the Attorney?

If your case is successful, your attorney will be paid out of the back pay you receive from the Social Security Administration. The SSA will deduct the attorney’s fee from your back pay and send it directly to your attorney. If your case is not successful, you do not owe your attorney any fees for their services.

What If Your Case Takes Longer?

The disability process can take time, especially if you need to go through appeals. Even though your attorney is paid only if your case is successful, you will not owe them additional fees as the process drags on. The attorney's fee will still be capped at 25% of your back pay or $6,000, whichever is lower.

Is It Worth Hiring a Disability Attorney?

While there is no upfront cost, you may still be wondering if it’s worth hiring a disability attorney. Here are some reasons why working with an attorney may improve your chances of success:

• Expert knowledge of the system: Disability attorneys are experienced in dealing with Social Security Disability claims and understand the nuances of the law and procedures.
• Help with complex cases: If your case is complex, involves a difficult disability, or requires an appeal, having a legal expert can increase your chances of approval.
• Higher approval rates: Studies show that individuals who work with an attorney are more likely to be approved for disability benefits than those who apply on their own.

Alternative Fee Arrangements

In rare cases, some attorneys may offer different fee arrangements, such as a flat fee or a lower contingency rate. However, the standard arrangement is 25% of back pay, up to $6,000.

Before hiring an attorney, it’s a good idea to discuss their fee structure in detail and ensure you understand how much you’ll be expected to pay if your claim is approved.