Contingency Fee Arrangement

Most disability lawyers work on a contingency fee basis, meaning they don’t charge you upfront fees. Instead, they take a percentage of your back pay (the amount of Social Security benefits owed to you for the period before your approval). This arrangement ensures that you only pay if you win your case.

• Typical Fee Percentage: Disability lawyers typically charge a fee of 25% of your back pay, up to a maximum of $6,000. This fee is set by the Social Security Administration (SSA), and it is the same regardless of the lawyer you hire.
• Why Contingency Fees Are Common: Contingency fees allow individuals who cannot afford to pay a lawyer upfront to still access legal representation. It also aligns the lawyer’s interests with yours: they only get paid if you win your case.

No Fees for Social Security Benefits After Your Approval

Once you’ve been approved for Social Security Disability or SSI benefits, your lawyer’s fee is based on your back pay, but no fees are charged for the monthly benefits you receive after approval.

• Back Pay vs. Ongoing Benefits: The lawyer's fee only applies to the back pay you are owed (the benefits that accumulate while you are waiting for your approval). Once you are approved and start receiving monthly benefits, your lawyer cannot take a percentage of those ongoing benefits.

What Happens If You Don’t Win Your Case?

If your disability claim is denied, you don’t owe any legal fees. Since most disability lawyers work on a contingency fee basis, they only charge if you win your case and receive benefits.

• No Fees for Denied Claims: If your claim is denied at the initial stage or during the appeals process, you won’t have to pay the lawyer for their time. However, it’s essential to note that you may still be responsible for other out-of-pocket costs associated with your case, such as medical records or expert testimony fees.

How Are Lawyer Fees Paid?

The Social Security Administration oversees how lawyer fees are paid. Once you win your case and start receiving benefits, the SSA will send the back pay directly to you. They will then take out the lawyer’s fee (up to the allowable amount) before you receive your check. Here’s how it works:

• Payment from Your Back Pay: When your benefits are awarded, the SSA will deduct the lawyer's fee from the back pay you are entitled to. This is why you don’t need to pay your lawyer directly—SSA handles this automatically.
• Cap on Fees: The fee is capped at $6,000. So, even if your back pay exceeds this amount, your lawyer’s fee will not go beyond this limit.

Are There Other Costs Involved?

While the lawyer’s fee is typically the most significant cost, there could be additional expenses associated with your disability claim. These costs are generally separate from the lawyer’s fee and might include:

• Medical Records: Obtaining and submitting medical records to the SSA may come with a cost. Some doctors charge a fee for releasing copies of your medical records.
• Expert Testimony: If your lawyer hires an expert (e.g., a medical or vocational expert) to testify on your behalf, there could be fees associated with that as well.
• Filing Fees: In some cases, you may be required to pay small filing fees for certain forms or appeals.

How to Find the Right Disability Lawyer for You

When choosing a disability lawyer, it’s important to ensure you are comfortable with their fee structure and that you fully understand how much you will be paying. Here are a few tips for finding the right lawyer:

• Ask About Fees Upfront: During your initial consultation, ask the lawyer to explain their fees and any additional costs. A good lawyer will be transparent and help you understand the full scope of the financial commitment.
• Experience and Reputation Matter: While cost is important, the lawyer’s experience and track record in handling disability cases are also crucial. An experienced lawyer can increase your chances of winning your case, even if their fees are a bit higher.
• Free Consultation: Many disability lawyers offer a free consultation, which allows you to discuss your case without financial commitment. Take advantage of this to evaluate the lawyer’s expertise and approach.