Contingency Fee Structure

No Upfront Fees

One of the key benefits of hiring a disability lawyer is that most charge on a contingency fee basis, which means you don’t have to pay anything upfront. Your lawyer will only receive payment if you win your case and are awarded benefits. This structure ensures that your lawyer has a financial incentive to win your case, and you don’t have to worry about paying legal fees unless you’re successful.

Percentage of Back Pay

Disability lawyers typically charge a percentage of the back pay you receive once your Social Security Disability claim is approved. The SSA limits the amount that an attorney can charge. The standard fee is 25% of your back pay or up to $6,000, whichever is less.

• Example: If you are awarded $20,000 in back pay for your disability benefits, the lawyer’s fee would be 25% of that amount, which would be $5,000. If your back pay is higher than $24,000, the lawyer’s fee would be capped at $6,000.
• Why Back Pay? Back pay refers to the benefits you are owed for the time period between when you became disabled and when your claim is approved. It typically covers the months or years that you were waiting for a decision.

Fee Cap

The $6,000 cap on attorney fees only applies to back pay for your case. In rare cases, the SSA may approve higher fees, but these situations are usually only allowed under special circumstances. The fee cap is designed to prevent lawyers from charging excessive fees, ensuring that you get a fair portion of the back pay.

Additional Costs

Out-of-Pocket Expenses

While the contingency fee covers most of the attorney’s work, there may be additional out-of-pocket costs associated with your disability case. These costs can include things like:

• Medical records fees: If you need copies of your medical records or reports from doctors, hospitals, or clinics.
• Expert witness fees: If a medical expert or vocational expert is needed to testify on your behalf.
• Court costs: In some cases, there may be fees for filing documents or requesting hearings.

These costs are typically not included in the contingency fee and may be billed separately. Your lawyer will generally inform you about any out-of-pocket costs upfront.

How Fees Are Paid

If your claim is successful and you receive benefits, the SSA usually pays the attorney’s fees directly from your back pay. This means you won’t need to worry about paying the lawyer out of pocket unless your lawyer works out a different arrangement with you. The SSA is responsible for sending the lawyer the payment for their services after your case is resolved.

What If You Don’t Win Your Case?

If your Social Security Disability claim is denied, you don’t pay attorney fees for the work your lawyer has done. Since most lawyers charge on a contingency basis, they only get paid if you win. However, the lawyer may charge for out-of-pocket expenses, which can still be your responsibility even if you don’t win.

Should You Hire a Disability Lawyer?

Although hiring a lawyer is not mandatory, working with a disability lawyer can significantly improve your chances of winning your Social Security Disability case. A lawyer will help you:

• Navigate the SSA process: Disability claims can be complicated, and a lawyer will guide you through the paperwork and deadlines.
• Prepare your case: A lawyer can help you gather the necessary medical evidence and documentation to support your claim.
• Represent you at hearings: If your case goes to a hearing before an Administrative Law Judge (ALJ), your lawyer will represent you and present your case effectively.