Wednesday, February 04, 2009

Attorneys Fees in Social Security a new cap figure

Historically attorneys fees in Social Security cases are 25% of back due benefits but most attorneys also agree to cap or limit the figure by using an approved form when submitting the fee agreement to the Social Security agency. Then the agency just disburses to the attorney and the client based on the fee agreement. Thereafter the claimant receives a full Social Security disability check or direct deposit as the attorney has been paid for obtaining or helping to obtain the benefits. Since most claimants also receive or are soon eligible to receive medicare or medicaid and no fee is due for that the contingency fee is an excellent way for those who do desire legal help to get that help without concern for paying for legal services until and unless they receive benefits. Of course no one must hire a lawyer and you can do it yourself to save that fee but it's not that easy. The new cap figure effective later this year is $6000.00 which means the fee is 25% but no more then $6000.00 and it will be less if your back benefits are under $24000.00. Back benefits due depends on the date your disability benefits should have begun and your wage record. If, for example, your back benefits total $10000.00 then the attorneys fee will be $2500.00. The agency computes the figures based on what I've noted above. Given that over your lifetime you can receive substantial dollar benefits and medical benefits the cap figure is a very small amount of those potentially lifetime benefits. Some complain about the contingency fee arrangement in these types of cases but it is the only way most people obtain high quality legal help at no charge unless they are successful. Try that with a surgeon or car mechanic!

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