How much are Social Security lawyers fees?
Social Security lawyer fees are based on a contingency fee agreement. This means that your lawyer is only due a fee if the case is won and there are back benefits to take the fee from. If the case is not won, then the client or claimant does not owe the lawyer an attorney fee. However, some attorneys may still charge the client for out-of-pocket costs.
The Social Security Administration has rules concerning the fee agreement process. Normally, Social Security disability attorney fees are not an issue because the amount is set by law. The fee is 25% of the past due benefits paid to the claimant up to a maximum of $6,000. Sometimes there is no attorney fee to be paid. This would happen when there are no past-due benefits awarded – the case is over right after it is started or the onset date of disability has been changed. Most of the time however, the Social Security Administration takes at least a year or more to process a claim, thereby producing past-due benefits that allows the attorney to be paid. For example, if the past-due benefits are $15,000, the Social Security lawyers fee would be $3,750. If the past-due benefits are $50,000, the Social Security lawyers fee would be $6,000 because of the fee cap.
The typical fee agreement between the client and lawyer include a provision that the client is to reimburse the attorney for any costs associated with preparing the case. This normally means copying cost for medical records and may include costs for medical reports. Usually these costs are not burdensome. For example, very seldom do copying costs total more than $150. The current fee agreement process between the client and attorney will allow the attorney to go forward on behalf of the client without any fees or costs up front.
Direct Deposit For Social Security Lawyers Fees
Currently, Social Security lawyers are receiving attorneys fees by direct deposit after the Social Security Administration withholds the fee from any back benefits due to the claimant. This means that normally the only amount that the client would have to pay directly to the attorney would be for out-of-pocket costs. Under direct deposit, the Social Security Administration electronically deposits the social security lawyers fees into the attorney’s bank account.