What are Contingency Fees in a Legal Case?

Posted on behalf of Dayes Law Firm PC on Sep 02, 2020 in SSD

looking at documents in conference roomThere are no upfront costs under a contingency fee arrangement. Instead, attorney fees are advanced to the end of your legal case. At Dayes Law Firm, if we do not recover compensation for you, we do not get paid.

Law firms accept cases on contingency to give people an affordable way to pursue a legal claim. Since we advance costs and fees to the end of your case, there is nothing you need to pay to start a claim or while we represent you.

We also offer potential clients a free, no-obligation initial consultation to discuss your situation and what you need to know about the SSD legal process.

Contingency Fees for a Social Security Disability Case

When it comes to determining fees in a Social Security Disability case, attorneys must adhere to a rule set by Congress under the Social Security Act regarding:

  • How much they can charge
  • Where the payment comes from
  • How the attorney may put together a fee agreement

Attorney fee agreements in an SSD case will state that you are granting permission for the Social Security Administration (SSA) to pay this fee if you win your claim.

What is the Purpose of My Initial Consultation?

During your free initial consultation, one of our attorneys will discuss the details of your claim, answer any questions you may have about the process and carefully explain our fees, including when and how they are paid. Social security cases are handled a little differently than other types of cases. The biggest differences include:

Limits on Attorney Fees

Federal law does not allow your attorney to charge you more than 25 percent of your backpay, and only up to a maximum of $4,000. For example, if your backpay is $10,000, 25 percent of this amount would be $2,500.

If an attorney tries to charge more without specific permission from the commissioner of Social Security, he or she can face penalties, and could even have his or her license suspended or revoked.

Backpay

The fees the attorney receives for your case may only come from your SSD backpay. The first check you receive from the Social Security Administration (SSA) will include backpay - minus the attorney fee - for the months your case was still pending.

Additional Out-of-Pocket Costs

The legal fees are for the attorney’s time to represent you and other associated costs, like research, compilation of your record, representation during a hearing and other work the attorney does. There are other out-of-pocket expenses that your attorney may incur while handling your case, but which are not included as an attorney fee. These costs may include copying documents, requesting medical records, postage and more.

Any out-of-pocket expenses will also be included in your written fee agreement that your attorney will explain and which you both will also need to sign.

Do Other Types of Attorneys Have Different Types of Fee Arrangements?

Other types of attorneys may require clients to pay a large deposit up front, as much as a few thousand dollars, to get started on a case. In addition to the costly retainer, a hefty hourly fee may also be added to your bill. This approach often makes hiring an attorney too expensive for many.

How Do I Get Started with an Attorney?

Pursuing a legal claim may seem intimidating, but when you place your case in the hands of one of our attorneys, we work to ensure your legal rights and best interests are protected.

Our Phoenix social security disability lawyers are ready to fight for the compensation you need and guide you throughout the legal process.

Call to schedule your completely free initial consultation. The meeting is confidential and carries no obligation.

Dayes Law Group. Legal help for your Social Security Disability Claims: 1-800-503-2000

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