here
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:
0 comments || Author: