Worried About the Cost of an SSD Lawyer? You Shouldn’t Be
If you’ve become disabled and unable to work, you may be eligible for benefits from programs operated by the Social Security Administration, such as Social Security Disability Insurance, or through other government agencies. However, the application process can be confusing. Valid claims may be delayed or denied. Many people know they need legal help, but are worried about how much hiring a disability lawyer will cost.
The good news is that most disability lawyers who handle SSDI and SSI claims work on a contingency fee basis. This means you generally do not pay attorney’s fees unless your lawyer helps you obtain benefits. Instead, the lawyer receives a percentage of the past-due benefits awarded in your case. The Social Security Administration also places limits on how much a lawyer can charge.
How Much Does Hiring a Disability Lawyer Cost?
When you decide to hire a disability lawyer to help you pursue an application for benefits from Social Security or another government program, you may worry about the cost of legal representation at a time when you may already face significant financial difficulties. Fortunately, Social Security regulations govern how much a disability lawyer can charge clients. These regulations ensure that applicants can access legal representation at a fair and affordable price.
Furthermore, although some disability lawyers may charge an hourly fee for their representation, most attorneys handle SSDI/SSI benefits cases on a contingency basis. In a contingency arrangement, you pay nothing up front to retain the lawyer to represent you during your benefits application proceedings. Instead, the attorney gets paid only if they secure benefits for you. As a result, contingency fees ensure that applicants face no financial risk if their lawyer ultimately cannot get their application approved.
Breaking Down Social Security Disability Lawyer Fees
Fees for disability claims must follow strict rules about the sources of payment and the total amount of money the lawyer can charge their client. Social Security regulations cap the fees that a lawyer can charge their client at the lower of a 25 percent contingency fee or $9,200 (which increases annually based on a cost-of-living adjustment). Furthermore, the lawyer’s fee must come from an applicant’s back pay award on their disability benefits claim. Thus, the lawyer’s fee does not affect future payments.
A disability lawyer can pursue a fee award above the 25 percent/$9,200 cap under certain circumstances. The cap applies in all cases where an applicant is awarded benefits during or before a hearing in front of an administrative law judge.
However, when an applicant appeals an unfavorable decision to the Appeals Council or the federal courts, their lawyer can petition the Social Security Administration for a fee above the standard cap to reflect additional work. A lawyer and their client can also agree to a provision in the fee agreement that allows the lawyer to petition for a higher fee if they perform an unusually substantial amount of work on the client’s case.
Understanding the Cap on Contingency Fees in SSDI/SSI Cases
Social Security rules prohibit disability lawyers from charging a contingency fee of more than 25 percent or a total fee of $9,200. This cap may seem low compared to other contingency fees you may have heard of. For example, you may have heard of personal injury attorneys charging contingency fees of 33 or 40 percent of the plaintiff’s recovery.
The 25 percent cap on contingency fees for Social Security disability cases ensures that potentially disabled individuals who may already have limited finances can access legal representation to assist them with their SSDI/SSI benefits claim without having to share too much of their back pay award with their attorney.
Back pay awards can help SSDI/SSI benefits recipients with debts that may have accumulated while waiting for approval of their claim. Caps on contingency fees ensure that more of the claimant’s back pay benefits go to the claimant to help them afford daily expenses.
What Is “Back Pay” and How Does It Affect Disability Lawyer Fees?
When the Social Security Administration awards disability benefits, it may award back pay for the period between the onset of the applicant’s disability and the approval of their application. Back pay awards recognize that applicants may wait through months or years of administrative proceedings or litigation before they can secure benefits.
For Supplemental Security Income applications, the SSA will pay back pay from the date of approval, stretching back to the later of the application date or the date of onset of disability. For Social Security Disability Insurance claims, the SSA will award back pay from the approval date, stretching back to the application date plus five months or the date the applicant became disabled. Additionally, the SSA caps back pay for SSDI claims at 12 months of pay.
Back pay represents the sole source of funds from which a disability lawyer can seek payment to represent a client in a Social Security disability claim. Furthermore, the caps set by the SSA mean that an attorney cannot receive more than the lesser of 25 percent of the total back pay award or $9,200.
Exploring Additional Costs Beyond Attorney’s Fees
Disability benefits claims can involve other expenses beyond an applicant’s legal fees. First, applicants must submit substantial medical documentation to prove their disability, which may involve paying copying fees from their medical providers to obtain copies of their medical records. Disability lawyers may have travel expenses to attend hearings on behalf of their clients. However, lawyers can petition the SSA for reimbursement of such expenses.
Finally, applicants may need expert testimony to substantiate their disability claims, which will incur hourly fees for the expert to review the record and testify at hearings. However, a disability lawyer can petition for Equal Access to Justice Act fees, which can help cover ancillary expenses incurred by an applicant during their disability benefits claim.
Contact an SSD Lawyer From Dr. Ted Injury Law Today
When you develop a disability due to an injury or illness that prevents you from working or performing daily tasks, you may be eligible for Social Security Disability Benefits. However, navigating the system is complicated.
An experienced disability lawyer from Dr. Ted Injury Law can make the claims process much easier to manage. A lawyer can help gather medical records, complete required paperwork, meet important deadlines, and communicate with the Social Security Administration. If your claim is denied, your lawyer can also handle the appeals process and represent you at a hearing.
Contact our firm today or call (800) 693-7833 for a free, no-obligation consultation to learn more about Social Security lawyer fees and how we can help with your claim.