You may a have seen the commercials on television for Social Security law firms claiming that you won't be charged a fee unless they win the case for you. While it may appear that the attorney works for you for free, that is not really the case. In fact, the Social Security Administration has rules in place concerning the way these contingency fee cases are handled, and if you are considering hiring an attorney to help you with your case, there are several facts you should know about this process.
If you have been denied your Social Security claim, your next step might be to have a lawyer advocate for you at your hearing. If you are in this situation, you likely lack funds to hire legal help. The Social Security Administration recognizes that you are in a vulnerable position and has taken steps to ensure that you are not taken advantage of by unscrupulous lawyers.
Your contingency fee attorney will present you with an agreement if you both decide to pursue your claim, called a fee agreement. This document, once signed by you, is filed with the Social Security Administration for approval. The SSA must approve of the agreement, and in order for it to be approved, the agreement must follow the guidelines set up by the the agency.
Fee agreements must have a cap of $6000.00 or no more than 25% of your back benefits, only payable if and when you win your case. For example, if your back benefits amounted to $10,000.00, the attorney would get $2500.00. Your fee agreement may stipulate that the attorney collects less than that amount. Normally your attorney cannot collect more than $6000.00 from your back pay, but there are some qualifiers on this rule.
It is important to note that the fee agreement only covers payment for your attorney's time, which could be very valuable and expensive if you had to pay for it upfront. Pay careful attention to the fee agreement for extra charges that your attorney may add. These charges are allowed by the SSA and commonly include printing and copying expenses and mailing expenses. Some attorneys request payment in advance, and some will bill you once the case is resolved. You will likely be responsible for these charges even if you lose your case, and you should receive an itemized statement of these charges.
There are some instances in which the attorney may be paid a higher fee. This is often referred to as a two-tier agreement, with the first tier being the standard 25% / $6000.00. The second tier of the agreement would apply if the case must be appealed to higher courts.
This system has been set up to help you recover the benefits you deserve to receive. Your Social Security attorney will have extensive knowledge of how the process works and will work exhaustively for a successful outcome for you. For more information, speak with experts like the Gieg Law Offices.
Share