Do Disability Lawyers Have a set amount they can be Paid?
Yes and no...and yes. Actually, anything that a social security disability representative, attorney or otherwise (Note: you can be represented by a non-attorney claimant's representative and sometimes these reps are former disability examiners such as myself, or former SSA field office claims representatives), charges must be delineated in a fee agreement that is approved by the social security administration.
There are two types of expenses that a person who is filing for social security disability may incur. The first is the actual fee for representation. How much is that fee and how does it work? For a very long time, a representative could receive 25 percent of a claimant's back pay up to a maximum of $4000. Then, it was changed to 25 percent of a claimant's back pay up to a maximum of $5300. It stayed at $5300 for several years. Now, as of the summer of 2009, that amount is 25 percent of a claimant's back pay up to a maximum of $6000 (to see the current fee amount, visit this page: Social Security Disability Attorney Fees - How much is the Fee and When do you Pay?).
Paying the fee? Well, you don't pay at all unless the representative wins your disability case. And that's because the fee is based on the back pay that you receive. Back pay, of course, depends on your established date of onset, and your date of entitlement following the five month waiting period). And obviously, though, if your case isn't won, there is no back pay, therefore no fee.
Costs that may be payable other than the fee for representation are spelled out in the fee agreement that you sign when you take on a representative. Typically, you will sign this fee agreement at the same time you sign an SSA-1696 form to appoint your representative. And, typically as well, when you sign this fee agreement you will usually sign a number of medical releases so your chosen representative can gather information to develop your case, as well as SSA-827 releases for the social security administration.
You should always read your fee agreement. There's a lot of variance in individual fee agreements. Examples? Some disability lawyers will only ask you to reimburse them for the cost of obtaining medical records and medical source statements (on an RFC, or residual functional capacity form). Others, however, will ask you to reimburse them for ALL SORTS OF COSTS including the cost of postage.
Read your fee agreement carefully before signing it. Also, make sure you understand this: some disability lawyers will advance the cost of obtaining medical records. That is, they will pay this cost upfront as they work on your case and then, when the case is over, will ask for reimbursement. And that works fine for most claimants since they are often in the position of having little disposable income or assets to draw on.
However, not all representatives do this. Some will ask you to pay for the cost of obtaining medical records as those records are being obtained. Since some lawyers do this and some do not, you may wish to learn how the lawyer you are thinking of hiring does it.
Also, last note, the fee for representation is payable only if your case is won. Other costs are payable regardless of whether you win or lose. So, again, read your fee agreement carefully.
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Social Security Disability Secrets
Social Security Disability Benefit Questions
Return to:
Social Security Disability Secrets
Social Security Disability Benefit Questions
There are two types of expenses that a person who is filing for social security disability may incur. The first is the actual fee for representation. How much is that fee and how does it work? For a very long time, a representative could receive 25 percent of a claimant's back pay up to a maximum of $4000. Then, it was changed to 25 percent of a claimant's back pay up to a maximum of $5300. It stayed at $5300 for several years. Now, as of the summer of 2009, that amount is 25 percent of a claimant's back pay up to a maximum of $6000 (to see the current fee amount, visit this page: Social Security Disability Attorney Fees - How much is the Fee and When do you Pay?).
Paying the fee? Well, you don't pay at all unless the representative wins your disability case. And that's because the fee is based on the back pay that you receive. Back pay, of course, depends on your established date of onset, and your date of entitlement following the five month waiting period). And obviously, though, if your case isn't won, there is no back pay, therefore no fee.
Costs that may be payable other than the fee for representation are spelled out in the fee agreement that you sign when you take on a representative. Typically, you will sign this fee agreement at the same time you sign an SSA-1696 form to appoint your representative. And, typically as well, when you sign this fee agreement you will usually sign a number of medical releases so your chosen representative can gather information to develop your case, as well as SSA-827 releases for the social security administration.
You should always read your fee agreement. There's a lot of variance in individual fee agreements. Examples? Some disability lawyers will only ask you to reimburse them for the cost of obtaining medical records and medical source statements (on an RFC, or residual functional capacity form). Others, however, will ask you to reimburse them for ALL SORTS OF COSTS including the cost of postage.
Read your fee agreement carefully before signing it. Also, make sure you understand this: some disability lawyers will advance the cost of obtaining medical records. That is, they will pay this cost upfront as they work on your case and then, when the case is over, will ask for reimbursement. And that works fine for most claimants since they are often in the position of having little disposable income or assets to draw on.
However, not all representatives do this. Some will ask you to pay for the cost of obtaining medical records as those records are being obtained. Since some lawyers do this and some do not, you may wish to learn how the lawyer you are thinking of hiring does it.
Also, last note, the fee for representation is payable only if your case is won. Other costs are payable regardless of whether you win or lose. So, again, read your fee agreement carefully.
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