Hiring a lawyer to fight for the Social Security Disability Insurance (SSDI) benefits you deserve should not cost you anything upfront. SSDI lawyers handle these claims and appeals based on contingency, only getting paid from the back pay you receive.
Understanding how you will pay your Rutherfordton Social Security Disability lawyer and how much you must pay them in attorney fees could make the decision to hire a lawyer much easier.
Social Security Disability Lawyers Work on a Contingency Basis
Most disability attorneys work on a contingency fee basis. This means they do not ask you to pay any upfront costs or fees when you hire them. Instead, they work for a percentage of the money they secure for you. In an appeal for disability benefits, this is usually a portion of the back pay you will receive after the Social Security Administration (SSA) approves your claim.
The percentage an attorney receives of your past-due monthly benefits after securing your approval depends greatly on the circumstances and your agreement.
SSDI attorneys usually have a “no win, no fee” policy. This means you will owe no attorney’s fees unless they win your case and secure disability compensation for you. The advantages of this type of arrangement include:
- You do not need to worry about paying any money now when you are out of work and may need SSDI benefits to make ends meet.
- The lawyer accepts all financial risks of the case, dedicating resources and time to build a strong argument and fight for benefits.
- You never need to pay the lawyer out of your own pocket; you only pay them from the back pay lump sum you receive.
- You pay nothing if the lawyer does not secure the disability benefits you need.
The Social Security Administration Sets Maximum Fee Limits for SSDI Lawyers
The SSA takes steps to protect applicants from SSDI lawyers who might charge too much or take advantage of their situation. They do this by:
Capping Attorney’s Fees
The SSA caps the fees attorneys can charge for handling SSDI claims and appeals. Since November 30, 2022, 87 FR 39157 has set this cap at $7,200. This is subject to change but is current as of July 2024.
Requiring Approval of Attorney’s Fees
The agency also requires all attorney’s fees in these cases to go through the SSA’s fee authorization process. This means the agency must approve the fees your disability benefits lawyer will charge to manage your case.
Still, it is imperative to have a written and binding fee agreement with your attorney before you sign a contract and allow them to handle your case. This ensures you understand the fee structure and any additional costs and that the law firm is being transparent with you.
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Your Social Security Disability Case Could Have Additional Costs and Expenses
Sometimes, individuals must cover additional costs and expenses related to their Social Security Disability Insurance case out of pocket. However, many attorneys will not ask you to reimburse their firm until the case closes and you have approval for benefits and receive your back pay.
Not every case will have these additional costs, and the actual expenses can vary widely. However, you should discuss the possibility and how the law firm handles this during your initial consultation.
Some common out-of-pocket expenses in SSDI cases include:
- The cost of obtaining medical records as needed to support the claim
- Administrative costs, such as making copies and mailing documents
- Fees for expert witnesses that might be necessary to support your claim or help document your condition and prognosis
Many SSDI cases depend on an attorney documenting that you have catastrophic injuries, a life-altering illness, or a terminal diagnosis. Having the evidence to support this—primarily medical records, assessments, and expert witness testimony—is essential to getting your benefits approved.
What Factors Can Affect the Legal Costs of an SSDI Disability Lawyer?
Many factors can influence how much an attorney will charge or how much they will receive from your Social Security Disability Insurance case. Some of these factors include:
How Much Back Pay You Receive
Ultimately, your lawyer’s contingency fee agreement will state they will receive a set portion of your back pay. Back pay in an SSDI case is the money you will receive to cover the time between your initial claim and when you received approval for benefits, minus any waiting period.
The SSA typically rewards back pay as a lump sum. How much you receive in this payment will dictate how much the attorney will receive in fees.
The Complexity of Your Case
A lawyer may charge a larger percentage of your unpaid back pay if your case has unusual complexities or challenges. If they must put in additional work to manage your appeal, this could cost you more.
Your SSDI Lawyer’s Experience
More experienced lawyers often charge higher fees. However, you should not decide which attorney is best for your SSDI appeal based on price. Hiring an attorney with extensive experience in disability cases could mean you have a better chance of getting approved for benefits.
Discuss Your SSDI Claim or Appeal With Our Team During a Free Consultation
Farmer & Morris Law, PLLC will review your SSDI case for free today. Working with our disability lawyers could improve your chances of recovering back pay and getting your claim approved for benefits.
Our SSDI attorneys will handle all the paperwork and build support for the claim, letting you focus on what is most important. The areas we serve include all of North and South Carolina, with four locations in the region.
Contact us today for a free initial consultation.