When you hire a disability lawyer to assist with your Social Security Disability claim, understanding how they get paid is crucial. Disability lawyers typically work on a contingency fee basis, which means they are paid only if you win your case. This arrangement can be very beneficial, especially if you’re dealing with financial hardship, as you don’t have to pay any upfront fees. Here’s a breakdown of how disability lawyers get paid and what you can expect.
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Contingency Fee Basis
Most disability lawyers work on a contingency fee structure, meaning they don’t charge you any money upfront. Instead, they receive a percentage of your backpay (past-due benefits) if your claim is successful. This allows people who might not be able to afford high legal fees to still get expert legal help.
How Much Do Lawyers Get Paid?
The Social Security Administration (SSA) sets guidelines for how much a disability lawyer can charge. Generally, the fee is 25% of your past-due benefits (backpay). However, there is a cap on this amount. The maximum fee a lawyer can charge is $6,000, even if 25% of your backpay exceeds this amount.
For example, if you’re awarded $40,000 in backpay, the lawyer will receive $10,000 (25% of $40,000), but since the maximum fee is $6,000, that is all they can charge. The SSA reviews the fee agreement to ensure it is reasonable before approving payment.
How Fees Are Paid
Disability lawyers usually don’t require clients to pay any fees out of pocket. Instead, the fee is deducted directly from your backpay by the SSA. When your disability benefits are approved, the SSA will send the approved fee directly to your lawyer from your backpay award.
Additional Costs and Expenses
In addition to the contingency fee, there may be other out-of-pocket expenses that your lawyer might charge. These can include:
- Medical record retrieval costs.
- Expert witness fees (e.g., medical experts or vocational experts).
- Transcripts of hearings or other required documents.
Before agreeing to any representation, make sure to ask about these costs and ensure you understand how they will be billed.
No Win, No Fee
One of the most attractive aspects of working with a disability lawyer is the no win, no fee structure. If your case is denied or you don’t win benefits, you don’t have to pay the lawyer. This arrangement means there’s no financial risk in hiring legal representation since you’re not required to pay any fees unless your case is successful.
Why Lawyers Are Paid This Way
The contingency fee system ensures that disability lawyers only get paid if you win your case, making them highly motivated to work hard on your behalf. It also allows individuals who may not have the means to pay upfront fees to still access quality legal representation.
How Hogan Smith Can Help
At Hogan Smith, we understand how the Social Security Disability process works, and we’re here to help you through every step of the way. We operate on a contingency fee basis, so you don’t need to worry about paying us upfront. Our experienced team will:
- Help you understand how much you might owe in fees.
- Ensure your application is complete and accurate.
- Represent you through the appeals process if needed.
Contact Hogan Smith Today
If you’re ready to apply for Social Security Disability benefits or need help navigating the claims process, Hogan Smith is here to assist you. Contact us today for a free consultation, and we’ll explain how we can help you, including how our fees work.
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