If I get a lawyer for SSDI will they be paid by Social Security?

A claimant may arrange for Social Security to “direct pay” a claim representative if that individual is an attorney but it is important to know that the funds that would redirected to that lawyer are subtracted from those funds allocated as disability benefits payable to the claimant.  Social Security does not provide separate funds to pay the designated claim representative.  The attorney is representing the applicant’s interests concerning his claim for benefits and as such the claimant is responsible to cover the fees for his services.

If a claimant and his attorney representative opt for SSDI  “direct pay” then the SSDI would withhold twenty-five percent of the total amount of benefits owing to the claimant pursuant to a favorable decision on his claim.  The attorney would need to submit his fee for services claim to the SSDI for approval and his fee could never total in excess of four thousand dollars.  Once SSDI approves his fee schedule he would then be paid from the claimant’s benefit withholdings.  The lawyer may be charged a yearly “claim assessment fee” by Social Security which could never be in excess of seventy five dollars.  Social Security does not allow a representative to “double dip” in that he can agree with his client to be paid out of the claim withholding amounts or he can opt to seek payment of his fee from the client directly but he may not seek partial payments of his fee from both.   The attorney representing a claimant may incur fees that would not be covered by SSDI direct pay.  He would not be able to then look to the disabled claimant for payment of those non covered expenses.  There are advantages and disadvantages to both payment plans for the client and for the attorney.  Discussion of all options is the best way to reveal the best choice for handling representation of your SSDI claim.