When do I have to pay my Social Security Disability lawyer?
Your lawyer should not charge you any upfront fees. Your lawyer’s fees have to be approved by the Social Security Administration. Your lawyer gets paid only when you are found disabled by the Social Security Administration and found entitled to retroactive benefits. Your lawyer is paid directly from the Social Security Administration when your retroactive benefits check is cut.
What are retroactive benefits?
Retroactive benefits are benefits (money), which accrue during the time frame it took you to be found disabled by the Social Security Administration and awarded. Retroactive benefits start accruing from your onset date. Your onset date is the date you became disabled.
How much do I have to pay my Social Security Disability Lawyer?
As of June 22, 2009, the maximum fee amount you can be charged for representation is $6000, which is set by the Social Security Administration. That means you should never be asked to pay more than $6000, and, in fact, you could pay a lot less!
Can my lawyer fee be less than $6,000?
As the law is written your lawyer is entitled to 25% of your retroactive benefits, not to exceed $6000.
If your retroactive benefits check is $15,000, 25% of that amount is $3,750. This is the amount the Social Security Administration will take out of your check and mail to your lawyer. Your retroactive benefits check is written for $11,250 ($15,000- $3,750.)
The only other costs you are responsible for are “out of pocket” expenses incurred by your lawyer as he/she prepared your case. An example of this expense is the money the lawyer paid for obtaining your medical records. “Out of pocket” expenses should be minimal and are usually collected after you receive your award from the Social Security Administration.
If you have questions about how social security disability lawyers are paid, give us a call!