The Fees Charged By Social Security Disability Attorney
A social security disability attorney is an attorney who is an expert or specialist
in dealing with the Social Security Disability laws and matters concerning with exemption rules under the Social Security Disability Income (SSDI), Supplementary Security Income (SSI) and Medicaid programs. These three largest Social Security Administration (SSA) programs are extremely complicated and therefore without hiring the services of a social security disability attorney, very few potential claimants can successfully navigate the deep waters of these programs for claiming their benefits.
The hiring of social security disability attorney involves entering into fee agreement by the claimant with the social security disability attorney. Social Security Administration or SSA must approve any fee agreement between the social security disability attorney and his /her claimant. At the administrative level, the fees are usually charged on a contingency fee basis through a fee petition to the Social Security Administration. Contingency fee means that the Social Security Disability Attorney is paid only if the claimant wins the case.
To get the approval of contingency fee contract, it must state that the social security disability attorney fees are not more than 25% of the back due benefits or $6,000 whichever less is. The current cap on attorneys fees is $6000. Social Security can adjust the cap for inflation if necessary. The fee agreements will also be rejected if a claimant appoints more than one representative from the same firm and not all of the representatives sign the same contract.
Where the Social Security Administration or SSA withholds the social security disability attorneys fees for payment directly to the representative, then there will be a user charge of 6.3% of the attorney fees whichever less is. The SSD attorney will be paid only out of the past due benefits of the claimant or back pay. If no back dated benefits are awarded, the attorney will not receive the fee and he or she is not permitted to ask their client/claimant about the back pay. A social security disability attorney is allowed to ask for out of pocket costs which his/her client or claimant and the concerned claimant must pay separately from the concerned attorneys fees (of 25% of back pay). The other costs may include charges for copying and postage or other stationery expenses.