What’s the Projected Cost for a Long-term Disability Lawyers Service?

What’s the Projected Cost for a Long-term Disability Lawyers Service?

Most LTD (long-term disability) lawyers charge little or sometimes no money for advanced payment. Instead, they work on a contingency basis. Basically, it means that a lawyer can only get his share of compensation once you manage to successfully win your case.

On average, a lawyer can expect to get 25% to 40% of your total compensation or monthly benefits. In the event, however, that you lose the case, your lawyer won’t get anything. So for example, if you’re entitled to a $50,000 compensation, your lawyer may charge you anywhere from $12,500 to $20,000.

Of course, there might be some slight variations from one state to another. For example, if your case is held in Florida, you don’t have to pay any upfront fees to your Florida long term disability lawyer under the SSI and Social Security Disability system.

Learning More about Your Lawyers Fee

Before you agree to a contingency fee arrangement, you need to agree on the exact percentage that your lawyer can receive. Keep in mind that everything is negotiable. Therefore, if your legal representative offers a 40% cut, try to make a counter-offer you both can agree on. Of course, make sure that your and his offer are within reasonable grounds. If you can’t come to agreeable terms, don’t hesitate to look for another firm to work with.

However, keep in mind that you’re basically getting what you pay for. If you hire a cheap attorney with a questionable or no experience at all, it’d be like wasting your efforts for nothing. That aside, it’s almost like you’re giving away the compensation that could have been yours.

Once you win the case and receive a settlement, you can easily determine how much your lawyer can receive. However, what if the compensation you receive is in the form of monthly benefits? Can your lawyer receive a portion of the past-due benefits only? Or will he also get a portion of your monthly share?

This is where ERISA, or the Employee Retirement Income Security Act, enters the picture. According to the law, your LTD insurer may cover the cost of your lawyer’s services under a federal court’s order. However, this is solely at the judge’s discretion; therefore, your LTD carrier may not cover your legal fees unless they get a judicial order.

What If He Charges You More than Necessary?

The problem with a contingency arrangement is that your lawyer might not get a payment if you lose the case. This explains why legal fees for a long-term disability lawyer are a lot higher than hourly or fixed-price cases. After all, the risks are quite high.

But still, there are some lawyers who charge more than necessary. Always remember that your lawyer’s fee should be commensurate with the amount of work he’s performed. If you think you’re charged more than necessary, you should first talk with your legal representative and see if you can come to a compromise. If it won’t work, your lawyer should provide you with a statement of the total hours he’s worked on your case. Lastly, if he can’t provide you the necessary document, you should file a complaint with the bar association in your state.

Categories: Lawyers

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