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August 3, 2016

What is a Contingent Fee Agreement?

If you have applied for Social Security disability benefits and have been denied, you may have been advised to hire an attorney to help you appeal your case.  However, you might be worried that you can’t afford an attorney – after all, aren’t lawyers famous for charging high hourly rates for every second they spend on each case?  Fortunately, if you hire an attorney or representative to help you with your disability appeal, your case will be handled with a “contingent fee agreement.” The Social Security Administration (SSA) has rules about how attorneys can charge clients for disability appeals.  Basically, if an attorney wants Social Security to approve his or her fee agreement, it must meet the following criteria: 1. You (the client) only have to pay the attorney if your claim is granted (if you “win” your appeal). 2. If you win, the attorney receives 25% of any back pay you receive. (“Back pay” is the money you receive from Social Security to cover the benefits you should have received while you were waiting for your claim to be processed and/or your appeal to go through.) 3. If your claim is granted at the initial application, request for reconsideration, or hearing level, the attorney can receive no more than $6,000, no matter how much back pay you receive. 4. If you lose at the hearing level and have to appeal your case to the Appeals Council or file a claim in federal court, most attorneys have a slightly different fee structure. Typically in those cases, the attorney receives 25% of your back pay without the $6,000 cap.  However, the attorney will likely have to submit a statement (called a “fee petition”) showing how much time he or she spent on your case in order for the fee to be approved. In … Continued

Filed under: Claims Process, Indiana Social Security Disability Attorney, Social Security Disability Attorney || Tagged under:
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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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