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May 27, 2016

Anatomy of a Social Security Hearing Decision Part II: Approval of the fee agreement

If you were represented at your disability hearing by an attorney or qualified representative, your favorable Social Security hearing decision will contain an “Order of Administrative Law Judge” either approving or disapproving your fee agreement.  That order also explains that you have fifteen days to respond to the judge if you do not agree with his or her order.  Some of my clients, after reading this order, call me because they are worried that they need to respond in order for their case to move forward.  Fortunately for them, though, this language is just another part of Social Security’s form letter.  I explain to them that if they are still willing to hold to their end of the fee agreement, they don’t have to do anything. Social Security has rules about how much an attorney can charge you for his or her services related to your Social Security disability case.  When you hired your attorney, you most likely signed a fee agreement that said you only had to pay your attorney if you were awarded benefits and received back pay.  Under Social Security’s rules, your attorney can typically charge 25% of your back pay, but no more than $6,000.  If you have an attorney who regularly practices Social Security disability law, the attorney probably has an agreement with Social Security that allows him to receive his fees directly from Social Security.  That way, neither you nor your attorney has to worry about calculating the amount of the fee and ensuring timely payment. However, that direct payment of fees can only occur if Social Security finds that your fee agreement complies with Social Security’s rules.  Therefore, when an Administrative Law Judge finds a claimant disabled, he or she must then review the fee agreement to make sure it is in compliance.  … Continued

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