People asked me all the time if and when they should hire an attorney. In my experience, on the initial and reconsideration level attorneys are not really necessary. Unless a person is illiterate and has no family member who can apply for them, all an attorney can do is exactly the same thing that the claimant does, all of which is self-explanatory. The government limits the amount of money an attorney can make from representing an SSDI or SSI applicant. If your case is never approved, the lawyer can bill you for her miscellaneous expenses such as postage, copying files, phone calls, etc., but not for her time. However, if your case is approved, you likely will have an amount of back benefits, payable at the time of approval, and your attorney is permitted to collect 25% of this before you get your first check. If you have no back benefits due (unlikely), then you would owe the attorney a fee as spelled out in your contract with him.
It may be to your advantage to retain a lawyer once you have been denied on the initial level, however. I say this because most attorneys who handle these claims are very familiar with the processes and can often speed things up to get you on to the ALJ level. They can also use this time to become familiar with your claim and you as a person, which would help in arguing your case before the ALJ. I would not recommend that anyone attempt an ALJ hearing alone, unless they are thoroughly familiar with the system and have a very well-documented file. Once again, do NOT retain an attorney without seeing him or her in person.
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