The maximum attorney fee for Social Security Disability claims is $7,200 or 25% of past-due benefits (also called backpay), whichever is lower. Because of this calculation, Social Security disability attorney fees vary based on a claimant’s awarded backpay. Fees are capped which is part of Social Security law.
As an example, if a claimant is awarded $10,000 in backpay on a disability claim, the attorney’s fee would be 25% of $10,000 up to a maximum of $7,200, whichever is lower. In this scenario, 25% of $10,000 equals $2,500 which is less than the maximum allowable attorney fee of $7,200. Therefore, the attorney’s fee in this case is $2,500.
Let’s look at another example. An individual wins their disability claim, receiving $30,000 in backpay. Although 25% of $30,000 is $7,500, Social Security caps attorney fees at $7,200, so the attorney cannot receive more than that amount. In this case, the disability attorney receives the maximum fee allowed, or $7,200.
Understanding Social Security Disability Attorney Fees
Data shows that disability claimants working with attorneys win more disability claims than those who file claims on their own. That’s likely one reason a majority of claimants applying for SSDI and SSI programs work with attorneys.
All Social Security disability attorneys work on a ‘contingent fee ‘basis. This means the attorney only receives a fee if their client’s disability claim is successful. In some instances, attorneys represent individuals who win their claim, but who aren’t awarded past-due benefits. In these cases, the attorney does not receive a fee even though the claim was successful.
What is the Maximum Attorney Fee for Social Security Disability?
As of now, the maximum attorney fee for Social Security Disability is 25% of your past-due benefits or $7,200, whichever is less. “Past-due benefits” refer to the money you should have received since you became eligible for disability benefits but haven’t yet been paid. It is commonly referred to as backpay.
Let’s break it down a bit:
- 25% Rule: This means your attorney can receive up to 25% of your past-due benefits as their fee. If your past-due benefits amount to $20,000, the maximum fee your attorney can charge under this rule is $5,000 (25% of $20,000).
- Cap at $7,200: Even if 25% of your past-due benefits exceed $7,200, your attorney can’t charge more than $7,200.
- Contingency Fee: Your attorney will only receive a fee if you win your claim and are awarded past-due and future, ongoing disability payments.
Why You Might Need a Social Security Disability Attorney
Now that we’ve covered the nitty-gritty of attorney fees, let’s talk about why having a Social Security Disability attorney can be a game-changer:
- Navigating the Complex Process: Applying for Social Security Disability benefits can be like navigating a maze. An experienced attorney understands the ins and outs, ensuring your application is thorough and well-prepared.
- Maximizing Your Chances: Attorneys know what the SSA is looking for in a successful claim. They can help gather the necessary medical evidence, ensuring your case stands the best chance of approval.
- Handling Appeals: If your initial claim is denied, don’t worry. Many claims are denied on the first try. An attorney can guide you through the appeals process, representing you at hearings and increasing your chances of success.
- Avoiding Mistakes: The SSA has strict rules, and a simple mistake in your application or a thing you shouldn’t say can lead to a denial. Attorneys are well-versed in these rules, helping you avoid common pitfalls.
- Reducing Stress: Dealing with a disability is challenging enough. Letting an attorney handle the legal aspects allows you to focus on your health and well-being.
Navigating the Path to Disability Benefits
In the world of Social Security Disability, understanding the maximum attorney fee is crucial. Remember, it’s 25% of your past-due benefits or $7,200, whichever is less. Having a knowledgeable Social Security Disability attorney can significantly increase your chances of a successful claim, making the fee well worth the investment.
If you’re in Charlotte, North Carolina, and need assistance, contact our local disability attorneys near you. They can guide you through the process, handle the legal complexities, and help you on your journey to securing the benefits you rightfully deserve.
Disability Attorneys in Charlotte, North Carolina
This content was provided by Collins Price, PLLC, disability attorneys in Charlotte, North Carolina. If you’re looking for a trustworthy disability attorney, contact our firm today for a free consultation on your claim. As always, there’s no fee for our services unless we win your claim.
