SSDI Attorney Fees: What You Should Know

SSDI attorneys typically work on a contingency fee basis, which means that they only get paid if you win your case. This fee structure ensures that you won’t be charged upfront fees and that your attorney is motivated to get you the best possible outcome. Here's a breakdown of the costs:

• Standard Contingency Fee: The Social Security Administration (SSA) limits the amount an attorney can charge for SSDI cases. The standard fee is 25% of your back pay (the money you are owed for the months you’ve been waiting for your benefits) or $6,000, whichever is less. So, if your back pay is $25,000, the attorney would be entitled to 25% of that, which would equal $6,250. However, the maximum fee they can collect is capped at $6,000.
• No Upfront Costs: You do not have to pay an attorney any upfront fees for their services. They are only paid if you win your case and receive back pay. This makes hiring an SSDI attorney more accessible to those who are struggling financially.
• What About Ongoing Payments?: Once your case is approved, your attorney’s fee is taken directly from your back pay. You do not need to pay them out of pocket, and no additional fees are charged unless otherwise agreed upon. This means there are no hidden costs to worry about.

What Are Back Pay and How Does it Affect Attorney Fees?

Back pay refers to the amount of money you are owed for the months you were eligible for SSDI benefits before your claim was approved. For example, if your application is approved after six months of waiting, your back pay would include payments for those six months. Your attorney will only receive a fee based on this back pay amount.

The amount of back pay you receive will influence how much your attorney earns. However, as mentioned, the SSA limits attorney fees to 25% of back pay or $6,000, whichever is lower. If you do not have any back pay or if the back pay is less than the attorney’s fee, your attorney may not receive a fee.

Other Possible Costs You Might Encounter

While the attorney’s fee is capped by the SSA, there may be additional costs you could face during the SSDI application or appeals process. These may include:

• Costs for medical records: Your attorney may need to gather medical records, test results, and other supporting documents to strengthen your case. There could be fees associated with obtaining these records, although your attorney may handle this for you.
• Court or Hearing Fees: If your case goes to a hearing before an Administrative Law Judge (ALJ), there might be additional administrative costs. These are typically minimal and are often covered by your attorney.
• Expert Witness Fees: In some cases, your attorney may bring in expert witnesses, such as medical professionals, to testify about your condition. These costs are usually borne by your attorney but may be deducted from your settlement or award.

Why Hiring an SSDI Attorney is Worth the Cost

Although there are costs associated with hiring an SSDI attorney, there are many benefits to having experienced legal representation:

• Increased Chances of Success: SSDI claims can be complicated, and an attorney can help you navigate the process more efficiently. Studies show that applicants with legal representation are more likely to be approved for benefits.
• Expert Guidance: An SSDI attorney understands the rules and regulations of the SSA and knows how to present your case in the best light. They can help ensure that all required documentation is submitted properly and meet deadlines.
• Appeals Process Support: If your claim is denied, an attorney can help you through the appeals process, which often requires additional paperwork, hearings, and legal arguments. Having an attorney during the appeals process can significantly increase your chances of success.