What Is Your Social Security Disability Representation Going To Cost You?

1 September 2015
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If you are getting ready to file, or have filed, for Social Security disability and been denied, you may want to hire an attorney to help you win your case. But if you are like most people who are applying for benefits, you are out of work and have limited amounts of income. Fortunately, you can still probably hire an attorney to represent you in your social security disability case. This is because most attorneys will not require you to pay any money up front.

What is A Contingency Basis?

When you start looking for a Social Security disability attorney, you will run across advertisements that state, "we don't get paid unless you get paid," or other ads that state you will be charged on a contingency basis. But exactly what does that mean? A contingency fee, or being paid on a contingency basis means that you only owe a fee if the attorney is able to obtain a favorable outcome for you. These fees are usually based on a percentage of how much you are awarded. 

In the case of Social Security disability, your attorney can charge you up to 25% of any past due benefits they are able to obtain on your behalf. This amount cannot exceed $6,000, but there are several exceptions to this rule. Your attorney may be able to charge more than $6,000 in the following cases:

  • If you have hired a second attorney and your first attorney has not released you from the contingency agreement you have in place with them.
  • If your attorney has to appeal your case to a higher court.

If your attorney is going to charge a higher fee, they are responsible for filing a fee petition with Social Security that must be approved prior to you winning your case.

If your representative is willing to work on a contingency basis, they will have you to sign a fee agreement prior to starting to work on your case, but you will not have to pay anything out of your pocket. Social Security must approve any fee agreements that are put into place. Once Social Security decides to award you disability, your attorney's fee will be subtracted from your past due award and sent directly to your attorney. The balance will be sent to you or deposited into your account.

Is This All You Owe?

Unfortunately, this may not be all you owe. Most attorneys will charge you for any expenses that they incur out of their pocket whether or not they win your case. These out of pocket expenses are not reimbursable from Social Security. Some of these expenses may be:

  • The cost of your medical records
  • Professional medical opinions
  • Expert witnesses if needed, and more

Any charges that you may incur will need to be spelled out in a fee agreement prior to your attorney doing any work on your case. Make sure you review this agreement carefully to ensure you know what you will be responsible for.

For more about social security disability representation, click on this link or do an online search.