Contingency Fee Basis for SSDI Lawyers

Most SSDI lawyers don’t charge upfront fees. Instead, they work on a contingency fee basis, which means they are only paid if your claim is successful. This makes it more affordable for people who may not have the financial resources to pay hourly or upfront fees. Here’s how the contingency fee structure works:

• Percentage of Back Pay: The lawyer’s fee is typically 25% of your past-due benefits (back pay). This is the amount of SSDI benefits that you are owed for the period between when you first applied for disability and when your claim is approved.
• Cap on Fees: The Social Security Administration (SSA) has a cap on the amount an SSDI lawyer can charge. The fee is limited to 25% of your past-due benefits, up to a maximum of $6,000. This ensures that you won’t be charged more than that amount, no matter how much back pay you receive.

How Are Past-Due Benefits Calculated?

Past-due benefits, also known as back pay, are the payments you are entitled to from the time you first filed your SSDI claim until the time your claim is approved. These payments can go back several months or even years, depending on how long it takes to approve your claim.

Your SSDI lawyer’s fee is based on the amount of past-due benefits you are awarded. For example:

• If your past-due benefits amount to $12,000, the lawyer’s fee would be $3,000 (25%).
• If your past-due benefits are $24,000, the fee would be $6,000, which is the cap.

It’s important to note that your lawyer’s fee only applies to the back pay. Once you begin receiving regular monthly SSDI payments, your lawyer is not entitled to a portion of those.

No Fees if You Don’t Win

One of the biggest advantages of hiring an SSDI lawyer is that you don’t have to pay if your claim is unsuccessful. If your claim is denied, or if your appeal is unsuccessful, you won’t owe any legal fees. However, you may still be responsible for certain costs, such as:

• Obtaining medical records: You may be required to pay for copies of medical records, doctor’s notes, or test results.
• Filing fees: Some states or local offices may require filing fees for appeals or hearings.
• Other minor costs: These costs are generally small and should be discussed with your lawyer in advance.

This "no win, no fee" arrangement significantly reduces the financial risk of hiring a lawyer.

When Are SSDI Lawyer Fees Paid?

The SSDI lawyer’s fee is paid after your claim is approved and your back pay is awarded. The SSA typically pays the lawyer directly from your past-due benefits, so you don’t have to worry about handling the payment. However, you should review the fee agreement with your lawyer to make sure you understand when and how the payment will be made.

Are There Additional Costs?

In addition to the contingency fee, there may be some small out-of-pocket costs associated with the SSDI claims process. These may include:

• Medical record fees: Some doctors or hospitals may charge a fee to provide you with copies of your medical records.
• Expert testimony fees: If your lawyer needs to hire an expert witness, such as a medical expert or vocational expert, there may be additional costs.
• Miscellaneous costs: These could include postage or document copying fees.

Make sure to discuss these potential costs with your lawyer upfront to avoid surprises later.

Why Should I Hire an SSDI Lawyer?

While hiring a lawyer for SSDI claims is not required, it can significantly increase your chances of success. Here are a few reasons why it’s beneficial:

• Increased chances of approval: SSDI applications are often complicated, and a lawyer’s experience with the process can help ensure your claim is properly filed, with the necessary documentation and evidence.
• Help with the appeals process: If your SSDI claim is denied, an experienced lawyer can guide you through the appeals process, including filing for reconsideration, requesting a hearing with an Administrative Law Judge (ALJ), and representing you in court.
• Faster resolution: Lawyers are skilled at navigating the bureaucracy of the Social Security Administration (SSA), which can help speed up the approval process.
• Access to medical evidence: SSDI lawyers can help gather the right medical records and evidence to prove your disability and increase the likelihood of approval.