As a Metairie Social Security disability lawyer, one of the first questions I am usually asked is "How much will this cost me?"
Many people know that a Social Security representative will improve their chances of getting disability benefits.
But, they are understandably worried that they can't afford an attorney or advocate to help them fight for their benefits.
There are many falsehoods and misconceptions out there about how much a disability advocate charges.
What is the Most an Attorney Can Charge for Disability?
Here's the great news, an SSDI lawyer will not cost anything upfront.
The cost of disability lawyer in Louisiana is the same as it is nationwide.
Social Security Disability law fees are set by federal law and cannot exceed 25% of your back benefits.
As of April 2024, the maximum fee is currently capped at $7,200 (if we win at the first hearing) or 25% of your back pay amount—whichever is less.
Disability lawyers enter into written fee agreements with their clients, which are then submitted to Social Security for approval. Once the fee agreement is approved, Social Security will directly pay your attorney from your back pay.
AND that amount is ONLY due if we are successful in representing you.
If your claim is denied, you owe no attorney fees.
*There is a possibility that a disability attorney may get more than the $7,200 cap if your case involves extensive work (usually because of multiple appeals to and from SSA and federal court). However, even in that case, the fee charged to you cannot exceed 25% of your back benefits. In this case, the fee petition process would have to be used. Your attorney would have to file a fee petition and have it approved by the Social Security Administration.
Changes in the Social Security Disability Attorney Fee Structure
In March 2024, Social Security announced plans to raise the fee cap from $7,200 to $9,200 in the fall of 2024. Furthermore, the agency indicated that the fee cap will now be adjusted annually to reflect cost-of-living increases (COLA), similar to most other disability benefits. This means the fee cap will no longer be a fixed amount but will change each year to account for inflation and other economic factors. Be sure to ask your attorney about the fee cap for the current year when discussing fee agreements.
How are Disability Fees Calculated?
Fees are only due when/if we win your case.
For example, let’s assume that we are successful in getting your disability benefits.
Your onset date is set 17 months prior to today’s date (that means that SSA will owe you back benefits).
Due to SSA laws, you can be paid 12 months of back benefits in this scenario (because SSA does not pay for the first 5 months).
If your benefit amount is $850 per month, your back benefits would equal $10,200 ($850 X 12).
The attorney’s fee on this amount would be $2,550 ($10,200 X 25%).
If this number were above $7200, then only $7200 would be paid to your attorney.
Will a Disability Attorney Take a Percentage of My Future Benefits?
Here is another important aspect of a disability representative’s fee: you do not owe a fee based on future benefits.
That is, you will not have to keep paying your disability attorney 25% of your monthly disability check.
Once the disability lawyer is paid from the back benefits, that is all you owe with respect to fees.
In some cases, disability attorneys charge costs (which are different from fees) whether your disability claim is successful or not.
What About Costs?
Costs include things such as expenses incurred for medical records, long-distance phone calls, mail, parking at your hearing, and other costs paid to develop your disability case.
As a Social Security disability lawyer in Louisiana who handles cases nationwide, I generally handle the cost issue on a case-by-case basis.
You should ask your disability lawyer (or disability representative) how they charge costs.
One thing to keep in mind if you use a disability representative from a national firm that must travel to your area is whether or not those travel costs will be charged to you.
This could include airfare, rental car, hotel stay, and meals. These costs can get expensive and really decrease the amount you end up with at the end of the day.
While the maximum amount of fees is limited by the law, costs are not limited in the same manner.
Thus, you need to watch costs and be mindful of them when you hire a disability lawyer. The costs for some national lawyers and advocates can be excessive.
We handle most cases digitally and remotely to reduce travel costs and do everything in our power to keep other costs, such as medical records requests to a minimum.
If you're preparing to apply for Social Security disability or appeal a claim denial, I've written a book 9 Mistakes that Can Disable Your Social Security Disability Claim.
This is a helpful and informative guide that will guide you through some of the common mistakes and errors that lead to unfavorable Social Security Disability decisions.
Don't make a costly mistake that could cause you to lose the benefits that you need to survive! I'd love to send you a copy.
Just click here to receive your free copy of my book 9 Mistakes That Can Disable Your Social Security Disability Claim.
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