Social Security Disability Attorney Fee Limits

Social Security Disability Attorney Fee Limits: Does Social Security Pay Attorney Fees

Social Security Disability Insurance (SSDI) helps people with disabilities maintain some semblance of normalcy in their lives by providing vital financial support. Understanding the difficulties people face when attempting to apply for SSDI benefits, the government permits Social Security Disability lawyers to be hired to help with the application process. However, laws governing the maximum amount of legal fees have been put in place to protect claimants’ interests. We explore the complexities of Social Security Disability Attorney Fee Limits in this post to provide insight into how people can seek legal counsel without incurring excessive costs. The fees that Social Security Disability attorneys can charge for their services are capped by the Social Security Administration (SSA). The purpose of these fee caps is to ensure that people with disabilities can obtain legal representation without having to give up a significant amount of their benefits that have been granted, while also paying legal professionals fairly for their expertise.

Fee Limits Structure for Social Security Disability: Does Social Security Pay Attorney Fees

• Contingency Fee Basis:

Social Security Disability attorneys typically work on a contingency fee basis. This means that their fees are contingent on the success of the case. If the attorney is successful in securing SSDI benefits for the client, they are entitled to a percentage of the retroactive benefits awarded.

• Fee Percentage Limit:

The SSA imposes a cap on the percentage of retroactive benefits that attorneys can claim as fees. As of my last knowledge update in January 2022, the fee limit is 25% of the retroactive benefits or $6,000, whichever is less.

• No Upfront Fees:

Attorneys are not allowed to charge upfront fees for their services in Social Security Disability cases. This provision ensures that individuals can seek legal representation without facing immediate financial burdens.

• Authorization Requirement:

Before an attorney can collect fees, the SSA requires them to obtain written approval from the client or, in certain cases, from the Social Security Administration.

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 $7,200 or 25% of your backpay, whichever is less. That limit on fees is a part of Social Security law, and in most cases, an attorney can’t charge more than that.

We recently surveyed readers about how much Social Security paid their lawyers after they were approved for benefits. For the majority, the fees were less than the $7,200 cap. For details, see our article on average fees paid to Social Security disability lawyers.

If a disability case requires multiple hearings or an appeal to the Appeals Council or federal court, a disability lawyer is permitted to file a fee petition with SSA to request to be paid more than the $7,200 limit. Social Security will review the fee petition and will approve it only if it is reasonable. To learn more, read Nolo’s article on when a lawyer can file a fee petition to charge more than $7,200.

Legal Services a Social Security Disability Attorney Offers

Our Social Security Disability attorney represents clients during the appeals process. Our attorneys can:

• File your initial SSD claim
• Answer your questions, update you on your case’s progress, and explain what is going on
• Consult your physicians to gather supplemental evidence for the decision-review process
• Advise you on the best possible course of action at any given moment
• Represent you throughout the appeals process, which includes meeting with various Judges and possibly sending in additional paperwork, according to the SSA

Types of Social Security Disability Benefits You Can Apply for

SSDI includes benefits to applicants who have earned a certain number of work credits recently enough and paid Social Security income taxes.  SSI includes monthly benefits to qualifying applicants who:

• Are blind
• Are 65 years of age or older
• Have a qualifying disability
• Earn income or have resources that are below a specified limit

Appealing a Denial of Social Security Disability Benefits

Our attorneys can help you navigate the various stages of appealing a denied claim. The four steps include:

• Reconsideration
• An Administrative Law Judge hearing
• A review by the Appeals Council
• A review by the Federal Court

Each phase of the process involves paperwork and preparation, and this is something we can handle on your behalf.

A key component of the SSDI application process is the Social Security Disability Attorney Fee Limits, which guarantee equitable and accessible legal representation. The fee limits protect against excessive fees and enable people with disabilities to seek the assistance of qualified professionals without jeopardising their financial security as they navigate the complex process of obtaining benefits. People can make educated decisions about obtaining legal counsel when pursuing Social Security Disability benefits by being aware of these fee caps.