Many people with disabilities rely on Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits to support themselves, but navigating the system can be overwhelming. A disability lawyer can help you streamline the application process and ensure that you receive the full amount you are entitled to. If you’re worried about the cost of hiring a lawyer, you don’t have to — most disability lawyers work on a contingency fee basis, meaning you only pay if you win your case.
Understanding the Cost of a Disability Lawyer
A lawyer who specializes in Social Security disability law does not cost any money until your claim is approved. Unlike other areas of law, there are no upfront costs to hiring an attorney, such as a retainer fee. Social Security disability attorneys work on a contingency basis, meaning that your attorney receives zero fees or costs if you lose your case. If you win your case, your attorney will receive 25% of your retroactive lump sum payment, or the statutory maximum fee of 25%, whichever amount is less.
Therefore, the attorney fee is contingent, or dependent, on both a successful outcome on your case and an award of retroactive benefits, or back pay.
What Does Back Pay Mean?
Retroactive benefits, or back pay, are the accrued monthly benefits for the time you spent waiting for thee Social Security Administration to favorably decide your case. For Social Security disability claims, you can receive retroactive benefits for up to 12 months prior to the month of your disability application. For SSI cases, back pay can be the month after the application is submitted. Due to the wait times involved with many claims for Social Security disability benefits, the approved party is often owed more than two years of retroactive disability payments. For SSDI claims, this retroactive payment comes in the form of a lump sum one-time payment, and for SSI cases, the retroactive payment is paid in three installments six months apart.
When you are approved for disability, you will receive an award letter with details about your retroactive back payment amount. The award letter will also notify you about the attorney fee, which will be automatically deducted from your retroactive lump sum payment.
Examples of Attorneys Fees in Common Social Security Disability Cases
Here are some examples for how attorney’s fees work in claims for Social Security disability, and how the fee cap works:
Example 1: John is represented by an attorney at his disability hearing and is approved by the judge. Based on the date that the judge agreed John’s disability began and based on the original filing date of John’s application for disability and his monthly disability amount, John is entitled to $24,000 in total retroactive back pay. John’s attorneys fees are $6,000, which represents 25% of his total back pay. John will receive $18,000 in a lump sum retroactive payment, and 100% of his ongoing monthly payments, since attorney’s fees only come out of his retroactive lump sum in the form of a one-time attorney fee payment, not any future benefits.
Example 2: Lilian is represented by an attorney on her claim for disability. She is denied by the judge and her case takes several years to settle after a federal district court appeal. When her case is ultimately approved, she is owed five years of retroactive payments. Her total retroactive amount is $100,000. Based on the contingency fee agreement of 25% of her retroactive award with a fee cap (limit) of $9,200, Lilian’s attorney’s fees are $ 9,200 total.
Important note: This second hypothetical assumes Lilian’s fee agreement notes the fee cap increase effective November 30, 2024, and her award was processed after this fee cap increase. If her case was approved before this date, or the fee agreement she signed did not note the fee cap increase from $7,200 to $9,200 in November 2024, her attorney’s fees would be $7,200. Moreover, even though she is owed $100,000 in retroactive back pay, the attorney’s fees cannot be higher than the statutory cap of $9,200.
Example 3: Max retains an attorney to represent him at his disability hearing, but his case is denied by the judge, and he is unsuccessful on appeal. Because Max is not owed any retroactive back pay, Max does not pay for attorney’s fees or costs. The representation was contingent (dependent) on a successful outcome in Max’s case.
Does Hiring a Disability Lawyer Involve Upfront Costs?
No. However, there may be an additional one-time fee for advanced costs your attorney paid to obtain your medical records. Most disability attorneys will pay up front to obtain medical records to submit as evidence of your disability. If your claim is approved, your attorney will bill you for those advance costs.
On average, at LaPorte Law Firm, this additional “advance cost” averages between $50 and $75. This cost is only charged to our clients if they are approved for Social Security disability and after they receive their retroactive back pay.
Finding the Right Disability Lawyer
A skilled disability attorney can provide the guidance and support you need to maximize your benefits. Here’s what you should do to find the right disability lawyer for your case:
Know the fees involved
For many people going through the Social Security disability process, hiring a disability attorney is their first time contracting with a lawyer. So, it’s okay to ask your lawyer any questions you may have about the process, as well as the fee structure. Your attorney should explain in plain, easy-to-understand language how the fee structure works and provide examples so you understand the potential fees under different scenarios. . They should also tell you about the contingent nature of reimbursement of costs for medical records after a case is won, and how the Social Security Administration (SSA) automatically deducts attorneys fees so that you are not charged any upfront costs or fees.
Research potential lawyers
Even in the internet age, finding an attorney who specializes in Social Security disability can prove challenging. Anyone who has performed that daunting initial search term “best Social Security disability lawyer near me” or some variation knows that the flood of information is overwhelming. There are many attorneys who practice similar areas of law, such as long-term disability or workers’ compensation but do not practice Social Security disability law. There are national law firms that practice in all 50 states, and local law firms that only practice in local jurisdictions.
When researching an attorney to assist with your Social Security disability, check their website to make sure they handle SSDI and SSI appeals and hearings. If their website is up to date with information related to Social Security disability law, this is a good indicator that the firm specializes in the area of law you need.
Schedule consultations
Social Security disability attorneys offer free consultations. This no-cost, no-risk service is a critical step in the process of retaining a disability attorney to help with your claim. At the free consultation, you should explain your situation to the attorney, and the attorney will help you understand how Social Security law applies to your case. This also an opportunity for you to ask questions about the time frames involved with your case and how the fee agreement works in contingency cases.
Ask about their experience
A Social Security disability lawyer will have experience with the entire process, from submitting your initial application to filing an appeal with the federal district court. The lawyer will have appeared before local administrative law judges, and know how the judges typically conduct the hearings and the types of questions they will likely ask.
It’s beneficial to have a lawyer who has a solid understanding of not only the regulations regarding SSDI and SSDI process but also how those regulations are enforced at the local level. They can recognize and address any local issues that may hinder the claims process, tailor their strategy to specific requirements of the local SSA office, and effectively navigate the appeals process and increase the chances of a favorable outcome.
Review communication and accessibility
You should understand the location of your attorney’s office, the hours of operation, and the best way to contact the office (e.g., text, phone, email).
Make an informed decision
After you have researched local attorneys, scheduled free consultations with them, and understood the way contingency fee agreements work, including the maximum fee allowable under SSA rules, determine whether hiring a disability attorney is the right strategy for you.
At La Porte Law Firm, we are committed to providing personalized legal services and ensuring our obtain the benefits they deserve. Get in touch with us today to schedule a free consultation.
FAQs
No. The attorneys fees are paid from your retroactive lump sum back payment. This fee is only paid if you are approved for Social Security disability and you are owed back pay.
A disability lawyer is entitled to 25% of your retroactive payment, or $9,200, whichever amount is less. Note that the $9,200 amount only applies if your fee agreement recognizes the increase in attorney fee limits announced by the Social Security Administration, effective November 30, 2024. If your fee agreement was signed before the fee cap increase in November 2024 and does not cite the fee cap increase, the maximum fee is $7,200.
Yes. Contingency means that the fees for an attorney are dependent on you winning your disability case and being owed retroactive back pay.
In some cases, no back pay is owed because the SSA issued a partially favorable decision, meaning the SSA has approved a case but on a different date than the original alleged onset date. Sometimes, the date that the SSA approves a case means there is no back pay (i.e., you turned 50 years old a few months prior to the approval, and Social Security approved your case at age 50). Because of the mandatory five-month waiting period, your benefit could be owed in the future after the date of the approval. In these cases, your attorney would not be owed an attorney fee because there are no past due benefits from which to pay an attorney.
In the case of a partially favorable decision, you have the right to appeal, but you should always consult your attorney about the merits of the appeal and the downside risks of appealing a partially favorable decision. Also, the attorney fee should not factor in the decision about whether to appeal a partially favorable decision at all.
