Contingency Fee Structure

Most SSDI lawyers charge a contingency fee, which means they are only paid if you win your case. This fee is usually a percentage of your back pay (the lump sum of benefits owed to you for the months you waited for approval). Here’s how it typically works:

• Percentage of Back Pay: SSDI lawyers typically charge around 25% of your back pay, up to a maximum amount set by the Social Security Administration (SSA).
• Maximum Limit: The SSA caps the lawyer’s fee at $6,000, even if 25% of your back pay would amount to more. This means that regardless of how much back pay you are awarded, your lawyer’s fee will not exceed $6,000.

No Upfront Costs

One of the biggest advantages of hiring an SSDI lawyer is that you don’t need to pay anything upfront. The contingency fee means that the lawyer only gets paid if your case is successful. If your case is denied, you won’t owe the lawyer any fees.

• No Retainer Fees: Unlike many other types of legal representation, SSDI lawyers don’t require a retainer or any initial payment to take on your case.
• Fee Only on Back Pay: The lawyer’s fee will only come out of the back pay you receive, so if you aren’t awarded any benefits, you won’t have to pay the lawyer.

What Happens If Your Case Takes Longer?

If your SSDI claim takes a long time to be approved, your lawyer will still be paid based on the back pay you receive once your claim is approved. If your case is approved quickly, the lawyer’s payment will be a smaller percentage of the back pay, while cases that take longer may result in higher fees, but within the SSA’s limit.

• Long-Term Disability Cases: If your case takes longer due to complications or a lengthy appeals process, the lawyer’s fee is still capped at $6,000, providing you with financial certainty about what to expect.
• Appeals: If your case is denied and you need to appeal, your lawyer may continue to work on your case, but the same fee structure applies—only earning a percentage of back pay once the claim is successfully approved.

Additional Costs

While the lawyer’s fee is typically covered under the contingency agreement, there may be other costs associated with your SSDI case. These are generally minor and may include:

• Medical Record Fees: You may need to pay for copies of medical records or reports from your healthcare providers, though some lawyers may cover these costs upfront and deduct them from your back pay.
• Administrative Costs: In some cases, there may be small administrative costs, such as filing fees for appeals or hearings, though these costs are usually minimal.

Fees for Unsuccessful Cases

If your claim is unsuccessful and you are denied benefits, you generally do not owe your lawyer any fees. The only time you may owe money is if there are costs for things like medical records or other expenses that you have agreed to pay out of pocket.

How to Make Sure You Understand the Costs

Before hiring an SSDI lawyer, be sure to have a clear discussion about the fee structure. Some key points to cover include:

• Confirm the Contingency Fee: Ask for clarification on the percentage the lawyer will take from your back pay.
• Inquire About Extra Costs: Be aware of any potential additional fees, such as medical record costs, court fees, or expenses that may be incurred during the process.
• Understand the Maximum Limit: Make sure you understand the SSA’s $6,000 cap and how it applies to your case.

Why Hiring an SSDI Lawyer Is Worth It

Even though you may have to pay a portion of your back pay as a fee, hiring an SSDI lawyer can be worth the cost. Here are some reasons why:

• Expertise: SSDI lawyers have specialized knowledge of Social Security law and the disability claims process, increasing the likelihood of a successful outcome.
• Appeals Support: If your claim is denied, a lawyer can help you navigate the complex appeals process, which increases your chances of getting the benefits you deserve.
• Save Time and Stress: Disability claims can be complicated and time-consuming. A lawyer can help you avoid mistakes, gather necessary documentation, and keep the process on track.