With the current $6,000 fee cap, all the potential fees from the case are bundled together and compared against a single $6,000 amount. If the totality of the potential fees exceed the $6000 fee cap, the attorney is only paid $6000.

That is assuming the attorney was hired under the standard “25% or fee cap” fee agreement. However, attorney fees must always be approved by Social Security and if the attorney wants the fees calculated differently (flat fee or hourly fee), there is nothing preventing that. But, again, the attorney has to get fee approval from Social Security before accepting funds as payment.

I am phrasing it this way because funds can be taken as a *deposit* toward potential future fees. However, those should be held in a trust account as they do not become fees unless and until Social Security approves a fee amount.

The other thing that claimants have to realize is that they don't have to pay their representative anything if they don't win their case—so what do you have to lose? Hire a representative early on in the process and you will dramatically increase your chances of winning your SS Disability claim.

Since the claimant pays 25% of the back beneftits or $5,300 (whichever is less) with a standard fee agreement, there is no reason to wait to hire a lawyer. You should consult a lawyer early in the process, rather than at the end (when you have an ALJ hearing coming up). Since you pay the same fee either way, you should get the lawyer involved early. You will get more representation for your money, and you might win your case earlier (and pay a smaller attorney’s fee, too, because the back benefits are less).