Understanding Attorney Fees in Social Security Disability Cases: What You Need to Know from Christopherle's blog

When applying for Social Security Disability (SSD) benefits, many claimants may be concerned about the cost of hiring an attorney to help with the process. Social Security Disability claims can be complex and time-consuming, and many people rely on experienced attorneys to navigate the intricacies of the system. But how much will it cost to hire an attorney, and what factors go into determining the fee?

In this blog, we’ll break down what you need to know about attorney fees in Social Security Disability cases, including a recent increase to the fee cap that may impact your case.

How Attorney Fees Work in Social Security Disability Cases

Social Security Disability cases are typically handled on a contingency fee basis. This means that you won’t have to pay any upfront costs to hire an attorney. Instead, the attorney’s fee is contingent upon whether you win your case. If you are awarded Social Security Disability benefits, the attorney will receive a percentage of your back pay — the lump sum of benefits owed to you from the time you first applied until your approval.

The typical fee for an attorney handling a Social Security Disability case is 25% of the back pay, with a maximum limit set by the Social Security Administration (SSA). This cap ensures that attorneys are compensated fairly without charging excessive fees. The cap on attorney fees was recently increased, so let’s take a look at the new changes.

Recent Increase in Attorney Fee Cap: What Does it Mean for You?

As of November 30, 2024, the cap on attorney fees for Social Security Disability cases has increased from $7,200 to $9,200. This change reflects the increasing complexity of disability claims and the need for attorneys to devote more time and resources to successfully represent clients.

Why the Increase in the Fee Cap?

The Social Security Disability process can be lengthy, with many claims taking months or even years to resolve. Attorneys often invest significant time in gathering medical records, preparing legal arguments, attending hearings, and appealing decisions. The increase in the fee cap helps ensure that attorneys are adequately compensated for the hard work and resources required to handle these cases effectively. Additionally, the rise in the fee cap takes into account inflation and the rising costs of legal services over time.

It’s important to note that while the maximum fee has increased, the attorney’s fee is still based on 25% of your back pay, and any fee above $9,200 must be approved by the SSA. This ensures that the attorney’s compensation remains within reasonable limits while still allowing them to adequately serve their clients.

Will You Pay the Full $9,200?

The $9,200 cap is the maximum amount that an attorney can charge for a Social Security Disability case. However, not every case will reach the maximum fee. The actual amount you pay will depend on the amount of back pay awarded and the complexity of your case.

For example, if your back pay is lower than $36,800, your attorney’s fee will be 25% of that amount, up to the cap. If your case results in a larger award, the attorney’s fee may reach the cap, but it can never exceed $9,200 without SSA approval.

What Happens if Your Case Is Denied?

If your claim is denied and your case moves to an appeal or hearing, your attorney will continue to represent you on a contingency fee basis. The attorney’s fee will still be calculated as 25% of any back pay you receive as a result of the favorable decision. If your case is ultimately unsuccessful, you will not owe your attorney any fees, though you may still be responsible for other costs, such as expert witness fees or administrative expenses.

Final Thoughts: Choosing the Right Attorney

Social Security Disability cases can be complicated, and having an experienced attorney on your side can make a significant difference in your chances of success. The recent increase in the fee cap may help ensure that you receive quality representation without having to worry about the cost upfront.

When selecting an attorney, it’s important to find someone who is knowledgeable about Social Security Disability law and who will work diligently to represent your best interests. At our firm, we are dedicated to helping our clients navigate the SSD process, and we will be transparent with you about attorney fees and the costs associated with your case.

If you have any questions about your Social Security Disability claim or attorney fees, don’t hesitate to contact us for a consultation. We’re here to help you get the benefits you deserve.

Contact us today to learn more about how we can assist with your Social Security Disability case!