Hello. I hope that you are enjoying the summer that finally arrived.  If you live in Chicago as I do, you've got to enjoy every moment of it because it does not last long!  

1% Attorney Fee?

One might assume that the larger the award, the larger the attorney fee, however, this is not accurate.  In Social Security disability claims, the fee agreement normally limits the fee to THE LESSER OF 25% of the past due benefits OR $5,300.

This means that in this case, although the client and her family will receive over $100,000 in past due benefits, the attorney fee still will be limited to $5,300.  Once again, this is because the fee agreement specifies that the fee is limited to THE LESSER OF 25% OR $5,300, pursuant to federal statute. 

It is important to keep this fee limitation in mind because it makes it much easier for a disabled individual to retain an attorney to represent them in their claim.  

Not only is there a fee cap, but the payment of any fee is contingent upon winning the claim and there being past due benefits awarded to the claimant.  The fee is withheld by the Social Security Administration and paid directly to the attorney at the end of the case from the claimant's past due benefits. 

Even more remarkable is the fact that the total attorney fee will amount to less than 1% of the total award that my client will receive in this case if we consider all the disability benefits she will receive until she begins receiving full retirement benefits at age 67.  The claimant will receive somewhere in the neighborhood of $500,000 in disability benefits until she reaches age 67.

Even if the total benefits were much less than $500,000, let's say $250,000, the total attorney fee would still amount to approximately only 2% of the total benefits award.  Remember, the attorney fee is paid from the past due benefits, not from any future benefits.

So the next time you hear someone say it will cost too much to hire an attorney, don't believe it.  In fact, not hiring an attorney in such a claim would be a classic example of being "penny-wise and pound foolish."

 

*******************************************************

$100,000 Disability Award

I received a call from a client who told me that she just received her past due benefit check in an amount over $100,000.  In addition, her minor daughter and husband each will be entitled to $25,000 based upon her receiving disability benefits. 

Not all cases, of course, result in such a large award of benefits.  In this case, the past due benefits were so high because her monthly benefit amount was substantial and because her minor daughter and husband were entitled to benefits on her earnings record.  Another reason why the award was so substantial is because I requested that the administrative law judge hearing the case reopen a prior application for benefits filed in 2004.  

In addition, I cross-examined the medical and vocational experts at the hearing as their testimony initially was not helpful.  Finally, after a hard fought hearing, the ALJ awarded benefits with an onset date in 2002.  This meant that my client had about six years of past benefits due to her and her family. 

She told me that the money would be used to pay off a large amount of debt that her family accumulated while pursuing her claim - and she had health insurance!  Without health insurance, her debt would have been much, much larger.   

Unfortunately, many people do not apply for benefits that they may be entitled to, or do not seek out the legal help that may help them qualify for and maximize their benefits.  It is important to keep in mind that it does not cost anything for an attorney to conduct a free consultation and evaluation of someone's claim and it could help a disabled individual win their needed benefits. 

You can reach me at 773.989.9899 or email me at:

 Rich@USADisabilityLaw.com