Many applicants often ask, “if I win my case, how much will I have to pay my attorney?” Social Security attorneys are paid on a contingency basis, which means they are paid only if you win your case. The Social Security Act allows attorneys to charge a fee for representation before the Social Security Administration. However, the maximum amount an attorney can charge is limited by law and certain requirements must be met for the Social Security Administration to approve the fees. The amount your attorney expects to charge and collect should be specified in a fee agreement.
The following are conditions that must be met before the attorney can collect a fee under the fee agreement:
- You or the attorney filed the fee agreement with Social Security Administration before you win a favorable decision.
- You, your legal guardian or representative payee and attorney both sign the agreement. The court can appoint a representative to be responsible for signing if you are legally incompetent or under age 18.
- The fee written in the agreement cannot exceed 25 percent of the award or $6,000 if the fee agreement is approved on or after June 22, 2009.
The attorney can charge the lesser amount of up to 25 percent of your award or the maximum fee amount of $6,000. In other words, if you are awarded $1,000 in past-due benefits, your attorney can collect $250 in fees. If you win $100,000, your attorney can only collect $6,000 in fees because 25 percent of $100,000 exceeds $6,000, you will be charged the lesser amount.
If you have two separate claims and are awarded past-due benefits in both cases, your attorney can collect the lesser of 25 percent or the maximum fee of $6,000 from the total award from both claims.
For more information, visit Social Security Administration’s webpage: Fee Agreements.
