If you’re like most people, before applying for SSD benefits, you might wonder “How much does a disability lawyer cost?” Because let’s face it: If legal fees eat up your payout after your claim’s approval, it might seem pointless. But the good news is, you have nothing to fear.
The good news is that there are protections in place to make sure your disability attorney fees are fair. And federal law limits how much money an attorney can charge you for handling your disability claim. Even better news: All disability attorneys work on contingency. This means that the attorney only receives payment if your claim is successful. No benefits for you? No legal fees for your attorney, either. Keep reading to dig into the details so you can understand realistically how much an attorney might cost you.
Disability Attorney Fees: Key Takeaways
- Working with a disability lawyer can triple your odds of getting benefits within 6 months of your application date.
- An attorney can tell you whether your case is viable and help you submit accurate paperwork the first time.
- The Social Security Administration (SSA) sets, reviews, and confirms all legal fees before attorneys can receive any payments. That means you know exactly how much an attorney will cost before you decide whether to work with one.
- Disability attorneys work on a contingency basis, meaning you pay nothing if you don’t receive benefits. The disability lawyer cost you pay for representation usually comes out of your lump-sum back benefits, which can be substantial.
What Does a Disability Lawyer Do?
There are two main things a disability lawyer does for you as a first-time claimant:
- Determine if you have a viable claim. In other words, they evaluate your individual circumstances to see how qualified you are to receive disability benefits.
- Help you complete and file the application paperwork with the Social Security Administration. While this sounds easy enough, there are up to five different forms you may need to fill out. And at least one of these forms is 17 pages long.
Seem like things you could do on your own? That’s technically true – you could, just like you could do your own taxes or diagnose your own illness. But just because you can doesn’t mean you should, for myriad important reasons.
An experienced disability lawyer knows what to look for in your work history, your current employment status, and monthly income. The requirements for both federal disability programs are quite different from a technical standpoint. Since health issues alone will not qualify you for disability payments, how do you know which program to apply for? An attorney can help you avoid wasting time and effort on claim paperwork that will never result in any benefits.
An attorney also knows how to fill out the paperwork correctly. For example: Did you know that stapling forms together before you submit them results in automatic claim denial? Or that writing in the margins or skipping a required field could also disqualify your application? Experienced disability attorneys are familiar with the process and know what documents to submit in support of your application.
Your Social Security disability lawyer can also help you:
- Rehearse answers to interview questions
- Obtain costly medical records
- Prepare for a consultative exam
- Answer questions and provide claim status updates
- Appeal a claim denial, if needed
When Do I Need a Disability Attorney?
Look, we understand that some people will get benefits without having a disability attorney. If your condition is on the Compassionate Allowances List (CAL), the SSA fast-tracks your application approval, for example.
But for others, hiring an attorney is an important decision that pays off at any stage in the process. Why? Because the numbers tell us this is true. A Government Accountability Office (GAO) report shows that working with an attorney almost triples your chances for securing disability benefits. What’s more, that report shows people working with an attorney are more likely to get benefit approval within 180 days.
If you only seek out an attorney’s help to appeal a denial, your wait time for benefits gets much longer. Expect to go another year with no income while you wait for your hearing date before an administrative law judge. At the appeals hearing stage, 4 in 5 Social Security disability applicants have attorneys.
If your appeal hearing results in another denial, your only option is to sue the government in federal court. Once that happens, Social Security attorneys that work on contingency are unlikely to accept your case.
Understanding How Disability Attorney Fees Work
The most important thing to know about disability lawyers is that they all work on a contingency fee basis. This means that they receive no payment unless they win your case.
Furthermore, Social security disability attorneys do not set their own rates. The government and federal law decide how much any disability lawyer may cost you in legal fees.
But there are some caveats to that rule, especially when cases are complicated. Let’s dig into some of those.
SSA Regulations on Attorney Fees
The Social Security Administration requires that legal fees be no more than 25% of your past due benefit or $9,200, whichever is less. This latest fee amount is in effect as of November 30, 2024, but most people pay significantly less than that.
Other regulations might apply for special circumstances. For example, if you hire more than one attorney, things might get messy.
If you hire one attorney and sign a fee agreement, then hire another, both lawyers must receive a payment. Or if you hire one attorney and sign a fee agreement, then fire that attorney and hire another, then both attorneys must file a fee petition with the SSA to receive payment.
Put simply, if you decide to change attorneys, you may have trouble securing a second representative. Few people like working for 50% of their normal pay rate.
What Are “Past Due” Benefits?
There are two types of “past due” benefits: retroactive pay and lump-sum back pay. Backpay is income you’d normally receive if the SSA approved your disability benefits claim as soon as you applied. Retroactive pay is compensation for when your condition started before your EOD (Established Onset Date). You can receive no more than 12 months of retroactive pay for Social Security Disability Insurance (SSDI) benefits. To qualify for a full 12 months of retroactive pay, your disability must begin at least 17 months before you filed your claim.
On the other hand, back benefits cover months the SSA spent reviewing your claim before they awarded you disability income.
Important: Supplemental Security Income (SSI) does not award retroactive pay.
Do All Disability Attorneys Work on Contingency?
Yes, all disability attorneys work on contingency. They also offer free consultations to determine whether you may have a valid claim before accepting you as a client.
This is because the contingency fee agreement states they cannot charge you anything unless the SSA awards you benefits. Attorneys will not accept people as clients who have no chance of winning their claims. But you have a far greater chance of success when an attorney helps you file your application.
Reviewing Your Fee Agreement
Your disability attorney should always give you a copy of their fee agreement at your initial consultation. But the second piece of advice is that you should always read it.
Remember that before your attorney receives payment, the SSA must review and approve all fee amounts. This means that just winning your case isn’t enough to secure a payment for legal services rendered. The fees you pay for a winning case must be “reasonable” – meaning no hidden fees, excessive amounts, or unexpected costs.
Additional Disability Attorney Costs and Expenses You Might Owe
How much does a disability lawyer cost if you lose your case? Essentially nothing for representing you. However, there are a few things to keep in mind:
- Disability lawyers may incur additional charges, such as copying and mailing your medical records.
- These costs must be reasonable and you may have to reimburse your lawyer for them, regardless.
- Attorneys should discuss any additional costs with you during your free initial consultation and include them in the fee agreement.
Example Disability Lawyer Cost Calculation Using Current SSA Data
Here’s an example of how that works using current SSA data:
Average initial SSDI claim-processing time in June 2024 is approximately 231 days.
You became disabled June 1, 2022. Then you lost your full-time job but work occasionally until June 1, 2023. You wait 5 more months before applying for SSDI on November 1, 2023. This is intentional, because you know about the five-month required waiting period.
The SSA denies your claim and you receive that decision letter on June 21, 2024. However, you appeal that decision with a request for reconsideration.
This is a very likely outcome, since just 20% of people who applied in 2023 got benefits on their first try.
Unfortunately, you’re denied a second time. At that point, you get an attorney to file your second appeal. The administrative law judge awards you disability benefits at your appeals hearing. But that adds another 342 days to your wait time.
You must then wait another 30-60 days for your first disability payment, lump-sum backpay and retroactive benefits.
The average monthly SSDI payment is currently $1,580. You waited about 2 years for your disability award and cleared the 5-month waiting period. In this example, the SSA owes you $37,920 in back benefits paid in a single lump-sum deposit. They also owe you $18,960 in retroactive SSDI benefits (12 months). That’s $56,880 in SSDI backpay benefits you’ll receive in a lump-sum deposit.
Federal law states the attorney can charge up to 25% of your backpay award ($14,220) or $9,200, whichever is less. So, in this example, after attorney fees, you’ll receive a single payment for $47,680 all at once. The disability lawyer cost you owe comes out of your back pay, not out of your own pocket. Without an attorney, you may never get SSDI benefits.
How to Get a Free Disability Benefits Evaluation
Want to know if you may qualify for Social Security disability benefits before you start the application process? Sign up for a free evaluation with a local attorney to learn whether it’s worth your time beforehand.
We can connect you with a nearby attorney who can help you understand your options and chances for approval. This service is completely free and has already helped more than one million people qualify for monthly benefits.
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Lisa Allen is a writer and editor who lives in suburban Kansas City. She holds MFAs in Creative Nonfiction and Poetry, both from the Solstice Low-Residency Program in Creative Writing at Pine Manor College. Prior to becoming a writer, Lisa worked as a paralegal, where she specialized in real estate in and around Chicago.
