How Attorney Fees Are Calculated And Paid

Most Social Security disability attorneys charge the same fees for representing claimants. This is because the Social Security Administration has set a certain standard for attorney fees, and all attorney fees must be approved by the Administration before the attorneys can be paid.

The standard fee for a "normal" Social Security disability claim that is concluded at or before the first administrative law hearing is 25% of the past-due benefits obtained for the claimant, with a maximum fee of $6,000. That is, for most cases the fee will not exceed $6,000. In most cases the 25% fee winds up being around $3,000.00, all of which is paid by the Social Security Administration out of the claimants retroactive benefits, and only paid if the claimant is paid benefits.

This is referred to as a "contingent" fee, and in simple terms, it means the client does not pay the attorney any money to begin the claim. The attorney is paid only at the end of the claim, and then only if the client receives past-due benefits.

Perhaps this is best explained through examples. For instance, a client may hire us to begin a claim for disability benefits. After going through the entire claim process, which can take many months, the client might be awarded $10,000 in past-due benefits, as well as future benefits for life. The attorney will be paid 25% of that $10,000 amount, or $2,500.00, as a fee. If the client had received $50,000 in past-due benefits, our fee would only be $6,000, because that is the maximum fee allowed, even though that is much less than 25% of $50,000. If the client is not paid retroactive benefits, there is NO attorney fee. If the claim must be appealed to courts beyond the administrative level, a different fee agreement may be required. The vast majority of claims, however, are concluded at the administrative level.

The attorney fee is withheld by the Social Security Administration, and is mailed to the attorney, usually a few weeks after the rest of the past-due benefits is mailed to the client. Occasionally the attorney receives the fee before the client receives the check for the past-due benefits. This is always embarrassing to us, and we would much prefer that the client be paid before the lawyer. However, we have no control over the Social Security Administration's process of making payment.

Unfortunately, the Social Security Administration is notorious for miscalculating benefits, and for mailing letters that are either confusing or sometimes just plain wrong. It is important for the attorney to verify every detail of the award in order to be sure the client receives the correct amount of benefit money.

If you have a Social Security disability claim and receive a confusing letter, call us, as your attorney, immediately, so that we can explain the letter to you.

At Byron A. Lassiter & Associates, there is no charge for the initial Social Security Disability or SSI consultation. I invite you to contact us with any questions you may have regarding Social Security disability. For more information about Social Security disability benefits, please visit the rest of our Web site.