Disability Lawyers Work on a Contingency Fee Basis

Most Social Security Disability lawyers charge a contingency fee, which means they are paid only if you win your case. This is beneficial for people applying for disability benefits because you won’t have to pay upfront fees or hourly rates. Instead, the lawyer’s fees are contingent upon your success.

• Contingency Fee: Typically, the lawyer will receive a percentage of the back benefits you are awarded. The standard fee is 25% of the back pay you are entitled to, up to a cap.
• Maximum Fee Cap: The SSA sets a cap on how much an attorney can charge for SSD cases. The fee is limited to 25% of your past-due benefits or $6,000, whichever is less. This means that if your back benefits are substantial, your lawyer will receive 25% of the award, but if the back pay is lower, the attorney will be limited to the $6,000 cap.

For example:

• If your past-due benefits are $20,000, the lawyer’s fee will be $5,000 (25% of $20,000).
• If your past-due benefits are $50,000, the fee will be $6,000 (the cap), not 25% of $50,000.

No Fees Unless You Win

One of the most attractive features of hiring a disability lawyer is that you don’t pay anything unless you win your case. This means that even if your claim is denied initially or at the reconsideration stage, you won’t have to pay any legal fees until the case is successful and you start receiving back payments.

If your case is denied at the hearing level or during other stages, you may still be responsible for some out-of-pocket costs like expert testimony or medical records, but the lawyer’s fee will only be deducted from the award if you win.

What If Your Benefits are Denied?

If your claim is denied at any stage, you do not owe attorney fees for the work done up until that point. You will, however, still be responsible for any expenses incurred during the process, such as the cost of medical records or expert evaluations. If you choose to continue the appeal process, the lawyer can charge fees for the appeal (if successful), which will again be deducted from the back pay once awarded.

Other Possible Costs

While lawyers work on a contingency fee basis, there may be other costs involved in your SSD or SSI case:

• Case Preparation Expenses: These can include fees for obtaining medical records, hiring vocational experts, or other necessary research or expert testimony.
• Administrative Fees: Some law firms may charge small administrative fees, but these should be clearly outlined and discussed in advance.

Can You Afford a Disability Lawyer?

Since most disability lawyers charge based on a contingency fee, you don’t have to worry about paying expensive upfront costs or hourly rates. The SSA requires that fees be approved by them, so you can rest assured that the fee is fair and regulated.

How to Ensure Fair Fees

To make sure you’re getting a fair deal, here are some tips:

• Ask About Fees Upfront: Any reputable attorney should be transparent about their fees from the beginning. Make sure you understand what percentage of your back pay will go to the lawyer and if there are any additional costs.
• Review the Fee Agreement: Before you sign a contract, carefully review the agreement that outlines the fees and expenses. This will ensure you know exactly what will be charged if you win.
• Consider the Lawyer’s Experience: The more experienced the lawyer, the more they can potentially improve your chances of success. An experienced attorney may be more efficient in gathering the necessary evidence, filing paperwork, and representing you at hearings.

What Happens if Your Benefits Are Not Paid in Back Pay?

If you are awarded future Social Security benefits, the lawyer typically does not charge for those ongoing payments. The fee is only for the back pay  you receive for the time you were disabled before your approval. In the case of a future monthly benefit, the lawyer will not receive a percentage.