Contingency Fee Basis

The majority of disability lawyers charge on a contingency fee basis. This means you won’t need to pay any upfront fees or hourly rates. Instead, the lawyer will take a percentage of your back pay if you win your case. The specific percentage depends on the lawyer, but there are federal regulations that cap how much a disability lawyer can charge.

• Typical Contingency Fee: Most disability lawyers charge 25% of your back pay (the retroactive benefits you are owed from the date of your disability claim until your approval).
• Maximum Fee: The SSA limits this fee to no more than $6,000 (whichever is less). If your back pay exceeds this amount, the lawyer will only receive the maximum $6,000, even if 25% of the total back pay would be a higher amount.

The back pay is typically the sum of benefits you’re owed between the time you applied for disability benefits and when your claim is approved. If your claim is approved quickly and you don't have much back pay, the lawyer’s fee will be smaller.

What Is Covered by the Lawyer’s Fee?

When you hire a disability lawyer, the contingency fee covers several aspects of your case:

• Initial Consultation: The initial meeting is often free, and you won’t be charged for discussing your case.
• Representation: The lawyer will handle all aspects of your case, including gathering medical records, completing paperwork, filing the claim, and representing you at hearings.
• Appeals Process: If your claim is denied and you need to go through the appeals process, the lawyer will continue to represent you, and the contingency fee will still apply if you win the appeal.

Additional Costs Beyond the Contingency Fee

While the contingency fee covers the lawyer’s services, there may be some additional costs involved in your case. These can include:

• Court Fees: If your case goes to court, there may be minor filing fees or other administrative costs associated with legal proceedings.
• Expert Witness Fees: In some cases, the lawyer may need to hire medical experts or other specialists to testify on your behalf. These costs are generally passed on to you, although they can sometimes be negotiated as part of the settlement.
• Medical Records: You may also need to pay for copies of your medical records or for certain documents required for your case. Again, these costs are typically modest.

It’s important to ask the lawyer upfront about any potential additional fees so you’re clear on what will be covered by their contingency fee and what may come out of pocket.

Payment of Lawyer’s Fee

The disability lawyer’s fee is typically paid directly by the Social Security Administration (SSA) once your claim is approved. The SSA will send the fee directly to your lawyer from your back pay. This means you won’t need to handle the payment yourself.

• When Is the Lawyer Paid?: Your lawyer will only be paid after your claim is approved, and you will receive the remainder of your back pay.
• If You Lose Your Case: If you don’t win your case, you typically won’t owe the lawyer anything, as they work on a contingency basis. However, if you are required to pay for any out-of-pocket expenses (like medical record fees), those will still be due.

Do You Need a Lawyer if You Can’t Afford One?

If you are worried about the cost of hiring a disability lawyer, rest assured that most attorneys specialize in Social Security Disability and SSI cases because of the contingency fee structure. This makes it affordable for many people, as you only pay if you win your case. If you can’t afford a lawyer’s fees, there are other resources available to assist you:

• Free Legal Aid Services: Many states offer free legal assistance for disability claims through nonprofit organizations or legal aid societies.
• Social Security Advocates: In some cases, non-lawyer advocates are available to help you with your claim at a reduced cost or for free. They can assist with gathering evidence, filling out paperwork, and guiding you through the process.

How to Choose the Right Disability Lawyer

When choosing a disability lawyer, it’s important to find someone who has experience with Social Security Disability cases and who you feel comfortable working with. You should ask the lawyer the following questions:

• How much experience do you have with disability claims?
• What percentage do you charge for a contingency fee?
• Can you provide references from clients you’ve helped win similar cases?
• What other costs might I incur during the case?

Make sure you’re clear on the fee structure before agreeing to work with a lawyer, and always feel free to ask about the total costs involved.