Contingency Fees: What You Need to Know

Most Social Security Disability lawyers charge a contingency fee, meaning you won’t have to pay upfront fees or hourly charges. Instead, the lawyer’s fee is a percentage of your back pay (the Social Security benefits you are awarded for the time between your application date and your approval date).

• Typical Fee: Social Security Disability lawyers are allowed by law to charge up to 25% of your back pay, with a maximum fee of $6,000. This means if your back pay is $20,000, the lawyer would receive $5,000 (25% of $20,000). If your back pay is higher, the fee will be capped at $6,000.
• No Fee If You Lose: If your claim is denied, you won’t owe your lawyer anything. This makes hiring a lawyer a low-risk option because they only get paid if you win your case.

What Is Back Pay?

Back pay refers to the amount of retroactive benefits you are owed from the date you first became eligible for Social Security Disability benefits, which can go back months or even years. Social Security benefits are often awarded for the time between the application date and the approval date, during which you were unable to work due to your disability.

For example:

• If you applied for SSDI benefits in January and were approved in July, you could be entitled to back pay for those six months.
• The lawyer’s fee will be based on the back pay amount you are awarded for this period.

Other Possible Costs

While the contingency fee is the primary cost for hiring a disability lawyer, there may be other minor costs associated with your case:

• Administrative Costs: Some lawyers may charge for administrative expenses, such as copying medical records or postage for sending documents. These costs are usually small and will be discussed with you in advance.
• Court Fees: In rare cases, if your case goes to a federal court, there might be additional filing fees or costs associated with the litigation process.

However, most disability lawyers will cover these expenses upfront and deduct them from your back pay once you win.

How to Find an Affordable Disability Lawyer

If you’re concerned about the costs, here are a few things to keep in mind when looking for a lawyer:

• Free Consultation: Many Social Security Disability lawyers offer a free initial consultation to review your case. This gives you an opportunity to ask questions about the lawyer’s fees and understand the likelihood of success before committing.
• Payment Flexibility: Some lawyers may offer flexible payment options or may be willing to negotiate their fee, particularly if you’re in a difficult financial situation.
• No Win, No Fee: As mentioned, most disability lawyers won’t charge you anything unless you win your case, which minimizes the financial risk for you.

How to Determine if Hiring a Lawyer is Worth It

Although hiring a disability lawyer comes with a fee, it can significantly increase your chances of winning your Social Security Disability case. Here’s why:

• Experience and Knowledge: Disability lawyers understand the complex rules and procedures involved in SSDI and SSI applications. They know how to navigate the system efficiently, ensuring that your application is thorough and accurate.
• Higher Approval Rates: Studies show that individuals who hire a lawyer to represent them in the appeals process have a higher chance of being approved for benefits compared to those who represent themselves.
• Appeals Process: If your claim is denied, a lawyer can help you navigate the appeals process, increasing your chances of a successful outcome.