24Dec

The Social Security “User Fee”

By Tomasz Stasiuk, December 24th, 2008 | Lawyers/Attorneys | 2 Comments

I have previously written about how Social Security (usually) pays your lawyer directly if you win your Social Security disability case.

But did you know that Social Security charges to do this. The Florida Social Security Disability Blog (in my old stomping grounds of Ocala and Gainesville), discusses the Social Security “user fee.”

The Social Security Act requires SSA to charge an assessment or “user fee” to a representative who receives all or part of his or her fee through direct payment from SSA. The Social Security Protection Act of 2004 (Public Law No. 108-203) capped the user fee at the lower of either a flat rate dollar amount or 6.3 percent of the amount of the fee payable from past-due Title II and/or Title XVI benefits. The flat rate dollar amount is adjusted periodically based on the cost of living. Currently, the flat rate dollar amount cannot exceed $79.

Yup, Social Security charges $79 to send your attorney a check. But, do not worry! It does not come out of your benefits. The money comes out of the attorneys fees and your lawyer cannot charge the fee back to you!

Tomasz Stasiuk is the founding attorney of the Stasiuk Firm - a law firm devoted to exclusively handling Social Security disability cases in Colorado. Contingent fees available.

Rehoss

if i am owed my exs lump sum back pay, does the attorney fees over ride a witholding order form court–in essence will social sec still pay the attorney if there is a witholding order in place for child support AND IF nit who ends up paying the attorney
http://www.Planet10Tech.com TomaszStasiuk

Some Social Security benefits can be assigned, levied, or garnished. I have specifically addressed child support here: http://www.socialsecurityinsider.com/2009/05/can-you-garnish-social-security-disability-benefits-for-child-support/

A lot depends on whether the individual is receiving SSDI or SSI benefits.

There is more discussion on this topic here: http://www.ssdanswers.com/2009/04/15/social-security-disability-and-child-support/

And here at SSA (scroll to the last question): http://www.ssa.gov/deposit/DDFAQ898.htm

As far as whether assignment, garnishment or levy would reach the 25% that goes to the attorney (based on a standard fee agreement), I do not know. Certainly the attorney would protest. After all, there would be no benefits to be levied without the attorney’s work and the third party attaching the benefits has been enriched by the lawyer’s work on the SSA case.

I am not arguing with you on whether you are entitled or not. I am just commenting on how the attorney might feel about it.