Contingency Fee: How SSDI Lawyers Are Paid

The majority of SSDI lawyers don’t charge hourly fees or retainers. Instead, they work on a contingency fee arrangement. This means that the lawyer only gets paid if your SSDI claim is approved, and you receive past-due benefits. Here’s how it works:

• Percentage of Past-Due Benefits: The typical contingency fee is 25% of the total amount of past-due benefits you are awarded. This is also known as the back pay you’re entitled to from the time you first filed your SSDI claim until you are approved for benefits.
• Cap on Fees: The Social Security Administration (SSA) places a cap on how much a disability lawyer can charge. The maximum fee a lawyer can charge is $6,000. This ensures that you won’t be charged more than that, even if 25% of your past-due benefits exceeds this amount.

What Are Past-Due Benefits?

Past-due benefits, also known as back pay, are the benefits you are entitled to from the time you applied for SSDI until you are approved. It’s important to note that back pay is paid out in a lump sum and is typically based on:

• The date you first applied for SSDI.
• The date you were approved for SSDI.
• The amount of time it took for you to receive approval.

Since SSDI benefits are paid on a monthly basis, your lawyer’s fee will come from the back pay you’re awarded, not your ongoing monthly payments.

How Is the SSDI Lawyer’s Fee Calculated?

The fee is straightforward but may depend on how your case progresses. Here’s a breakdown of how the fee is typically calculated:

• Approved After Initial Application: If you’re approved for SSDI benefits right after the initial application, your lawyer will receive 25% of your past-due benefits, up to the $6,000 cap.
• Approved After Appeals: If your SSDI claim is denied initially and you have to appeal the decision, the lawyer will still charge 25% of your past-due benefits, and the cap remains at $6,000. This can be advantageous for people who had to go through multiple levels of appeals, as the lawyer will only be paid once your case is approved.

No Fees if You Don’t Win

One of the biggest advantages of working with an SSDI lawyer is that you won’t have to pay anything unless your case is successful. If your claim is denied or your appeal is unsuccessful, you won’t owe the lawyer any fees for their services. However, you may still be responsible for some out-of-pocket expenses, such as:

• Costs related to obtaining medical records
• Filing fees for appeals or hearings

These costs are usually minimal compared to the contingency fee and should be clearly outlined in your agreement with the lawyer.

Why Should I Hire an SSDI Lawyer?

While the fee structure for an SSDI lawyer is reasonable, you might wonder if it’s worth hiring one. Here are some reasons why having a disability lawyer can be beneficial:

• Increased Chances of Approval: SSDI claims can be complex, and the approval process is not always straightforward. Having a lawyer who is familiar with the SSA’s rules can increase your chances of approval, especially if you have a complex case.
• Faster Resolution: A lawyer can help speed up the process, ensuring your claim is filed correctly the first time and any mistakes or missed deadlines are avoided.
• Appeals Process: If your claim is denied, a lawyer can assist you with filing an appeal and representing you at a hearing before an Administrative Law Judge (ALJ).
• Expert Legal Advice: Disability lawyers have experience in handling cases that may require medical evidence, vocational assessments, and other complex documentation. Their expertise can ensure that your case is presented in the best possible light.

What to Consider When Hiring an SSDI Lawyer

If you decide to hire a lawyer, consider the following factors when making your choice:

• Experience: Look for a lawyer who specializes in Social Security Disability cases. Check their experience in handling SSDI claims and their success rate.
• Reputation: Check reviews, ask for referrals, and verify that the lawyer has a good reputation in the field.
• Communication: Choose a lawyer who is responsive, communicates clearly, and keeps you updated on the status of your case.
• Fees: Make sure you fully understand the fee structure, including any additional costs that might arise during the process.