HOW DOES "BACK PAY" OCCUR?

"Back pay," also called "Past Due Benefits" is a big topic in Social Security circles.  Back pay is the lump sum that Social Security pays a disability claimant when a claim is first decided in the claimant's favor.  This is the amount the attorney or representative will be paid out of.

Back pay or past due benefits occur in one of two ways:

1)  The claimant proves that he became disabled prior to filing his application for benefits.  For example, I became disabled on 6/1/15 but didn't file my application until 8/1/16.  I am entitled to collect benefits back to 6/1/15, as long as my back pay doesn't exceed 12 months.

2)  It takes Social Security a long time to decide my case.  For example, I file for disability and get denied.  I appeal and have to wait 18 months to get a hearing.  If I eventually win, I am entitled to be paid back to the date of disability in most cases.

It's possible for back pay to accumulate under both of these scenarios.  If Social Security delayed in paying your benefits, it's only fair that they "catch you up" when they decide to settle.  

Do attorneys get any part of your future monthly benefits?  No.  Once the attorney's fee has been paid out of the back pay (usually 25%), all the Social Security checks in the future belong to the claimant.  Also, if you don't collect any back pay, the attorney cannot charge you a fee for any of his work.

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