what does a lawyer cost for disability case

by Prof. Mary Effertz MD 7 min read

Even though disability attorneys' fees are usually capped at $6,000, nearly seven in ten of our readers (68%) told us their attorneys received less than that amount. The overall average was $3,750—quite a bit lower than the cap. For those whose initial application was approved, the average was even lower: $3,100.

Full Answer

How much will it cost to hire a disability attorney?

Whether you’re applying for SSI or SSDI, the attorney fees will be limited to 25% of your back pay. But the amount must not be more than $6,000. Note that the payment will be based on your back pay and not on your monthly benefit amount. This means that if you’re not entitled to back pay, your lawyer will receive nothing.

How much does a Social Security disability attorney get paid?

It covers things like:

  • Paying for medical records
  • Copying important documents
  • Postage
  • Travel to and from hearings
  • Long-distance faxing and telephone calls

Does social security pay the disability attorney fee?

When you hire a disability attorney on a contingency basis, you grant SSA permission to directly pay the attorney when you receive benefits. So SSA receives the legal bills from your attorney instead of you. The attorney fees are then directly paid by SSA to your legal counsel. Naturally, the fees are paid only when your disability claim is successful and you are due back benefits.

How does a disability lawyer get paid?

You may be eligible for CPP disability benefits if:

  • you contributed to the CPP for a certain number of years
  • you’re under 65 years old
  • you have a severe and prolonged mental or physical disability
  • your disability prevents you from working on a regular basis

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What is the most a disability lawyer can charge?

$6,000First, the basics: Federal law generally limits the fees charged by Social Security disability attorneys to 25% of your backpay, or $6,000, whichever is lower. Back payments are benefits that accrued while you were waiting for Social Security to approve your case.

How far does SSI back pay go?

Retroactive benefits might go back to the date you first suffered a disability—or up to a year before the day you applied for benefits. For SSI, back pay goes back to the date of your original application for benefits.

What is the most approved disability?

1. Arthritis. Arthritis and other musculoskeletal disabilities are the most commonly approved conditions for disability benefits. If you are unable to walk due to arthritis, or unable to perform dexterous movements like typing or writing, you will qualify.

How does SSDI calculate back pay?

Calculating SSDI Back Payments Count the months between your EOD and application date to determine retroactive months. The number of months between the EOD and approval date, minus the five-month waiting period, plus the retroactive months, times your monthly payment equals the total amount of back pay due.

How do I survive waiting for disability?

While you wait for disability benefits to be approved, consider seeking assistance through other local, state, and federal support programs. These may include: Supplemental Nutritional Assistance Program (SNAP) Temporary Assistance for Needy Families (TANF)

What is the average time to get approved for disability?

about 3 to 5 monthsGenerally, it takes about 3 to 5 months to get a decision. However, the exact time depends on how long it takes to get your medical records and any other evidence needed to make a decision. * How does Social Security make the decision? We send your application to a state agency that makes disability decisions.

What is the hardest state to get disability?

OklahomaOklahoma is the hardest state to get for Social Security disability. This state has an SSDI approval rate of only 33.4% in 2020 and also had the worst approval rate in 2019 with 34.6% of SSDI applications approved. Alaska had the second-worst approval rate, with 35.3% of applications approved in 2020 and 36.2% in 2019.

What conditions are automatically approved for disability?

What Conditions Automatically Qualify You for Disability?Musculoskeletal disorders (e.g., bone, joint injuries, skeletal spine injuries)Special senses and speech (e.g., visual disorders, blindness)Respiratory disorders (e.g., chronic bronchitis, emphysema, asthma)More items...

What are 4 hidden disabilities?

The four most common types of hidden disabilities are:Autoimmune Diseases. In most people, the body's immune system protects them from invaders like bacteria and viruses. ... Mental Health Conditions. ... Neurological Disorders. ... Chronic Pain and Fatigue Disorders.

How long does it take to get your first SSDI check?

Generally, if your application for Social Security Disability Insurance (SSDI) is approved, you must wait five months before you can receive your first SSDI benefit payment. This means you would receive your first payment in the sixth full month after the date we find that your disability began.

How far back can retroactive SSDI payments go?

12 monthsThe SSDI allows retroactive payments for a maximum of 12 months prior to the date of application, subtracting the waiting period. That means that a minimum of 17 months that will have passed since the date of onset (EOD) and the date the application is approved.

Is SSDI back pay one lump sum?

SSDI backpay is always paid as a single lump sum. How much backpay you'll receive depends on your disability onset date, your application date, and the date you were approved for benefits. In addition to your backpay, you'll also be entitled to monthly SSDI payments.

How much does a disability lawyer cost?

Our survey showed that the overall average attorney's fee was $2,900 in SSI cases.

How much do disability attorneys get paid?

Even though disability attorneys' fees are usually capped at $6,000, nearly seven in ten of our readers (68%) told us their attorneys received less than that amount. The overall average was $3,750—quite a bit lower than the cap. For those whose initial application was approved, the average was even lower: $3,100. When a case went to an appeal hearing, the average amounts were higher. More than half of readers who got an award after a hearing decision reported that their lawyers were paid the maximum of $6,000, with an average fee of $4,600.

What happens if you don't get disability?

If you don't get benefits, the lawyer doesn't get paid. But if the Social Security Administration (SSA) approves your disability application, it will pay your attorney a percentage of your past-due benefits (or " backpay "). For cases that are resolved at the hearing stage and have a fee agreement, there's an upper limit on the lawyer's fee: 25% ...

Do disability lawyers charge fees?

When Disability Lawyers Don't Charge Anything. Aside from the fact that lawyers generally won't receive a fee if their clients don't get an award for Social Security disability, a few of our readers' attorneys didn't take any payment even when they won the case.

Are Lawyers Worth the Cost?

Of the readers who hired a lawyer at some point along the way—to help with the application and/or represent them at the appeal hearing—60% were ultimately approved for benefits, compared to 34% of those who didn't have a lawyer's help. (For more details, see our survey results on whether a disability attorney is worth it .)

How much does a disability lawyer cost?

Almost all fee agreements between lawyers and disability clients involve a type of contingent fee. “Contingent” in this context means that there is no fee due unless you win your case.

How much is the attorney fee for Social Security?

Furthermore, the Social Security Administration (“SSA”) must approve all fee agreements between claimants and attorneys. They normally limit the attorney fee to 25% of the “backpay” (otherwise known as “past due benefits”) or $6,000, whichever is less. “Backpay” or “past due benefits” are those that build up while you are waiting for your case to be approved.

How to contact a disability lawyer in North Carolina?

So hiring a disability lawyer is probably way more affordable than you think! For a FREE consultation with a North Carolina disability lawyer, please call 1-800-525-7111. There are no upfront costs and no attorney fees unless we successfully obtain disability benefits for you.

What happens if you lose your case before an ALJ?

If you lose your case after a hearing before an Administrative Law Judge (“ALJ”), you appeal that loss to the Appeals Council, and the Appeals Council agrees that the ALJ made a mistake, they could send your case back to the ALJ for a new hearing. In such a case, your attorney may be able to ask for more than $6,000.

What is the cap on disability fees?

Finally, you should be aware that the $6,000/25% cap on disability attorney fees does not apply to the amount of money your attorney pays out-of-pocket on expenses relating to your case.

How to contact a disability lawyer?

For a FREE consultation with a Board-Certified Specialist in Social Security Disability, please call 1-800-525-7111 or complete the short form below. “Hiring a disability lawyer is probably way more affordable than you think. We would love to help you if we can.”.

Does Social Security pay for legal representation?

However, the Social Security disability system is structured in a way that allows almost everyone with a disability claim, no matter how pressed for funds, to pay for competent legal representation by paying the lawyer at the END of the case, and ONLY if you win your claim for benefits.

How much does a disability lawyer get?

Most disability lawyers get less than the maximum amount of $6,000. That’s because most cases usually take no more than a few months to get approved.

How much does an attorney charge for SSA?

Though the SSA caps lawyer fees at $6,000, certain instances allow attorneys to charge more than that.

What is a Contingency Fee Agreement?

When you hire a disability lawyer, you will typically be asked to sign a contingency fee agreement. Basically, it allows the SSA to pay your attorney when you’re approved for disability. The payment will be taken from the social security disability benefits you will receive.

What happens if you hire a second disability attorney?

If your first disability lawyer did not waive their fee, your new attorney will have to file a petition with the SSA. The SSA will divide the fee between them. But if both did a significant amount of work on your case, the SSA may approve a higher amount.

What happens if you are denied a disability?

If your claim gets denied at the disability hearing, your attorney may take your case to the Appeals Council or before an administrative law judge. In instances like this, they are also allowed to petition for a higher fee.

Do disability lawyers have to pay upfront?

Unlike other types of lawyers, disability attorneys are paid on a contingency basis. Meaning, you can avail of their services without having to pay them upfront.

Does SSDI back pay include disability?

If you are applying for SSDI, your back pay will include retroactive benefits from the onset of your disability to when your claim got approved . For SSI, the back pay is computed from when you applied for benefits to the date of your claim’s approval. Backpays are usually included in your first benefits check.

How much can a disability attorney charge?

Again, the maximum the disability attorney or nonattorney advocate can charge is 25% of your backpay for his or her services, up to a maximum of $6,000. For example, if your back-dated benefits are calculated to be $10,000, your representative will be paid $2,500 and you will receive $7,500. However, an experienced representative is likely to be able to get you more in backpay by negotiating your disability onset date with the SSA —s omething you can't do without a hearing (in an "on-the-record" ALJ decision) if you're not represented.

What records do disability attorneys need?

During the course of representation, a disability attorney or nonlawyer advocate usually has to request a claimant's medical, school, work records, and occasionally medical or psychological examinations; these can be expensive.

What is a contingency fee agreement?

Contingency Fee Agreement. When you first hire a disability attorney or nonlawyer advocate, whether you are filing for SSDI or SSI, you typically sign a fee agreement that allows the Social Security Administration (SSA) to pay your representative if your claim is approved.

Can a Social Security representative be paid out of past due benefits?

The representative will be paid only out of your past-due benefits, or "backpay." If no back-dated benefits are awarded, the representative will not receive a fee. However, in this situation and a few others, the representative is allowed to submit a fee petition to Social Security to request a higher fee.

Does it cost to hire a disability representative?

It doesn't usually cost you anything to hire a representative; the fee will be paid out of the disability award you eventually receive. Some representatives, however, will ask you to pay a nominal amount for costs (see below) at the beginning of your case.

Do disability attorneys get paid?

Social Security Disability attorneys and advocates work "on contingency," meaning they get paid only if you win your case. Unlike many attorneys, disability lawyers do not charge up-front fees or require a retainer to work on a Social Security disability case. Most disability attorneys and nonlawyer representatives will be paid a fee only ...

How do disability lawyers get paid?

How does a Social Security disability lawyer get paid? In order to get paid, Social Security disability lawyers ask their clients to sign written fee agreements spelling out the payment terms. The lawyer then submits the fee agreement to the Social Security Administration (SSA) for approval.

What is disability lawyer?

A disability lawyer has the education and experience to anticipate and resolve legal issues that could impede your case. If your claim proceeds to the federal district court level, you will need an attorney to represent you.

Do disability lawyers charge for out-of-pocket costs?

When understanding your disability lawyer cost, it is important to note possible out-of-pocket fees. Most lawyers charge separately for the cost of obtaining medical or employment records, as well as copying and postage expenses. Additionally, a lawyer will charge for arranging any medical or psychological examinations that become necessary. While some attorneys ask their clients to pay these costs up front, others deduct them from the clients’ backpay after the case is won. This is something clients should ask about during their initial consultation with a prospective attorney.

What happens if I lose my case?

Your disability lawyer cost will be $0 unless they win your case. Therefore, if they are unable to obtain Social Security benefits for a client, there is no fee. Nonetheless, some lawyers may still charge for out-of-pocket costs such as obtaining or copying documents or medical records. Before you make a final decision, ask the lawyer about their policy for cases that are unsuccessful.

Does a Social Security Disability lawyer cost more than a non-lawyer representative?

Everyone has the right to use a representative to help with Social Security applications or appeals. Individuals may choose a disability attorney or a non-lawyer representative to provide this assistance.

How much can a lawyer get from Social Security?

According to Social Security law, an attorney cannot received more than $6,000, or 25% of your backpay, whichever is less. However, there are certain limited circumstances where a lawyer can request a higher fee by filing a petition with the Social Security Administration. A lawyer’s request may be granted in cases that require multiple hearings or those that proceed to federal court. However, the SSA carefully reviews these petitions and will only approve requests it considers reasonable.

How much do personal injury lawyers collect?

Personal injury lawyers collect a percentage (usually one-third) of the verdict or settlement they win on behalf of the client . Disability lawyers receive their payment from the client’s past-due benefits, or backpay.

How Much Can Disability Lawyers Charge?

In fact, federal law says disability lawyers cannot charge more than 25% of past-due benefits — or $6,000, whichever is less.

Why do you need a disability lawyer?

There are some key reasons why disability lawyers make sense if you have no money or resources to your name. If you’re living hand-to-mouth, it can be hard to attend hearings or pay doctors for your complete medical records. That’s where an attorney comes in: 1. Disability lawyers can pay for your medical records.

Why is it good to get a copy of the SSA decision?

This is good, because disability lawyers can then help you understand why the SSA denied your application for benefits.

What to do if the SSA rejects my claim?

If the SSA rejects your request for benefits, disability lawyers can request a reconsideration or file your appeal paperwork immediately. They can also request a new hearing date or Appeals Council review. Disability lawyers can also help prepare you and any witnesses prepare for your appeals hearing.

Do you pay a disability lawyer if you don't win SSD?

3. You don’t pay disability lawyers anything if you don’t win SSD benefits. A disability lawyer cannot charge clients for denied claims. So if your case loses, they get paid nothing, ever.

Can a disability lawyer represent you in an ALJ hearing?

2. Disability lawyers can attend your hearings without you there. Your lawyer can represent you in your ALJ appeals hearing so you can stay home and rest. If you’re very ill, in pain, can’t get a ride or deal with bad weather, this is a great option.

Do medical records cost more than you can afford?

Medical records aren’t free, and some may cost more than you can afford. Lawyers know exactly which ones best support your claim and pay those costs up front without charging you. Your attorney can then pay to send the ones the SSA needs for your claim via certified mail. That way, you have proof that will stand up in court showing which SSA agent received them and when. A paper trail like this is key for winning your case faster and getting paid the most benefits you’re owed!

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Fee Agreements and Fee Petitions

  • To get their fees paid, Social Security lawyers enter into written fee agreements with their clients and submit those fee agreements to Social Security for approval. If Social Security approves the fee agreement, it will pay your attorney for you directly out of your backpay. The attorney and the client can agree on any fee, as long as it does not exceed $6,000 or 25% of your backpay, whiche…
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What Should Be in A Fee Agreement?

  • An attorney must submit a written fee agreement to Social Security before Social Security issues a favorable decision on the claim. Most lawyers will submit the fee agreement when they take your case. Social Security has suggestions for the language in the fee agreements, but there are really only two main requirements. First, the amount of the fee cannot be more than the maximu…
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Who Pays For Legal Costs?

  • There are two kinds of expenses in a case: the amount the lawyer charges for her time and the expenses she pays for while working on your case. In a typical Social Security case, an attorney will pay copying fees and postage to get records to help prove that a claimant is disabled. Those records might be located at hospitals, doctors' offices, scho...
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