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Social Security Hearing Exhibit Files Now on Compact Disk

Jonathan Ginsberg with Social Security CDJonathan Ginsberg with Social Security CD

Over the past year, Social Security has made meaningful strides in reducing hard copy paperwork and improving the efficiency of the disability adjudication process.  One of the most noticeable changes has been the gradual elimination of cardboard and paper files, which are being replaced by compact disks.  Social Security personnel now scan medical records and burn the files to compact disc.   Employees at the hearing office mail the discs to the attorney for pre-hearing review.  From the perspective of an attorney the CD system avoids the hassle of scheduling time to review the files or hiring someone to physically photocopy the files.

The only “fly in the ointment” has to do with the format of the files on the CD.  Instead of using a PDF format that everyone else in the free world uses, Social Security has decided to use a format called a TIFF format.  TIFF files are larger, harder to print and require a different type of file reader.

Although files in PDF format would have made a lot more sense, I sincerely applaud Social Security for what appears to be a success in reducing the blizzard of paper that has long been associated with disability claim files.

What to do if You are Getting the Run-around from your Lawyer’s Office

I frequently get emails from frustrated disability claimants who are upset at the long delays.  Often the claimant expresses frustration with his lawyer because of the delays.  Earlier this week, for example, I received an email from an individual who is suffering with a fairly significant medical problems and who is about to lose her home – she wanted to fire her lawyer and retain me.  I responded by telling the claimant that the delays were not her lawyer’s fault and to stay the course.  In that case, I happened to know the lawyer and I also told her that she had very capable counsel.

This morning I received a slightly different question about attorneys, which I will reproduce here:

I hired a law firm to help me with my disability appeal. I am at the ALJ stage and needed help filing that appeal, representing me at the hearing. It is going on 3-4 weeks of talking with the lawyers clerk about filing for me. They say they filed one day, then the next say they are going to be filing, this has gone on 4 times now. Although I have not talked to the actual attorney that will be representing me, I don’t mind as long as the person I do talk to knows what they are doing and are truthful about it. What advice can you give me to handle this situation? Should I fire this firm and find another? I appreciate your suggestions, thoughts, advice.

Thanks,
Leighann

My response: Leighann’s question raises a somewhat different issue than delays.  Here, the problem is lack of communication.  Since short (60 day) deadlines are involved, I think that Leighann has the right to be concerened about missing the deadline.

Bear in mind that not missing deadlines is topic #1 in any malpractice or lawyer discipline seminar.  Every law firm should have a solid calendaring system to insure that no deadlines are missed.

Given the run-around that Leighann has been getting, it may be time for becoming a bit more forceful in her communications.  I would advise her to get the name of the paralegal who is assisting her, then write a letter to the paralegal, with a copy to the lawyer who is the actual representative.  The letter should express her concerns (like she did in her email to me) and ask for a copy of the filed appeal paperwork.   Both copies of this letter should be sent by registered mail, return receipt requested.

I don’t know the law firm at issue, but if they handle Social Security cases regularly, I would be surprised if they did not have the appeal deadlines of their cases under control.  However, nothing gets the attention of a lawyer like a registered letter from a client inquring about possible missed deadlines.

How Do I Fire my Disability Lawyer?

My question is this.  I had a lawyer in NC for my disability hearing which I lost. His representation was horrible, not to mention his communication with me. Anyway, I told him I no longer wanted his services for my appeal. He said he would file a form with SSA stating that he was not my lawyer. I ask him to send me a copy 3 weeks ago. He did not. I emailed him again and ask him if he had even sent the form. he sent me a very rude reply with no answer.
I need to let SSA know that this man is not my lawyer. I called and they still have him listed. How do I get him off as my lawyer? He obviously isn’t going to cooperate. He is horrible. Some advice????
Robin

Jonathan Ginsberg responds: As a disability claimant, you have the right to terminate the representation of your attorney.  The attorney doesn’t need any special form to withdraw from representation – all he needs to do is write a letter to Social Security advising them that his attorney relationship with you has ended.   I do not practice in North Carolina but I suspect that under the Bar rules there, your lawyer has an affirmative obligation to withdraw if you have terminated him.  In order to avoid confusion, you should send your lawyer a letter using certified mail, return receipt requested, asking him to notify Social Security that he is no longer your representative.

I would also suggest that you look carefully at the fee contract you signed with your lawyer.  Often the standard fee agreement used by most disability lawyers also allows the lawyer to ask Social Security to approve a fee based on time expended.  Further, be aware that if “Lawyer 1” has filed a form 1696 Appointmetn of Representative, any subsequent lawyer you hire – “Lawyer 2” – will need to file a fee petition setting out exactly what he did and how much time he spent.  The fee petition process is much more time consuming and intrusive than the simple 25% fee agreement system.  I mention this because some lawyers will not take a case if a prior lawyer withdrew and will not waive fees.

Finally, make sure that there is no confusion as to who has the duty to file appeals or respond to communication from the Appeals Council.  You do not want to miss an appeal or file double appeals forms because this issue was not cleared up.

It is unfortunate that your relationship with your lawyer deteriorated.  It is much easier to part ways on a friendly basis.  At this point, however, you may best be served by communicating with your lawyer in writing only and by spending a few extra dollars on certified mail.

Will Filing a Bankruptcy Affect My Social Security Disability Case?

In my law practice, I have handled both bankruptcy and Social Security disability cases.  Unfortunately, with delays in the Social Security system approaching 3 years, more and more of my disability clients find themselves considering bankruptcy.

What happens, therefore, if you decide to file for bankruptcy while you are waiting for your Social Security decision?  What happens if your SSDI or SSI case is approved the week after you file for bankruptcy?  Can you keep your past due “lump sum?”  Does your attorney get paid?

If you have a pending Social Security application, you need to let your bankruptcy lawyer know about it.  Bankruptcy lawyers hate surprises and pending Social Security benefits are certainly relevant to a bankruptcy evaluation.

Under the current bankruptcy law, Social Security benefits are not countable for means test purposes but they may be countable for budget purposes.  So, if you do get approved for benefits while your bankruptcy is still active, you may need to amend your budget.

In my view, bankruptcy works best when there are no changes during the course of your case – whether you file Chapter 7 or Chapter 13.  The addition of, say, $1,500 per month to a bankruptcy budget will change things and you need to know in advance what this change will mean.

The question on the mind of most Social Security applicants has to do with the lump sum payment – which represents months or years of “past due benefits.”  Can you keep this lump sum?  The answer is “it depends.”  It depends on your State’s exemption laws and the practice and procedure in your local bankruptcy court.

In the Northern District of Georgia, where I practice bankruptcy, I have successfully argued that my client’s Social Security disability payments are exempt assets pursuant to Georgia’s exemption statute, which makes exempt a “debtors right to receive a Social Security benefits.”   I take the position that the monthly benefits would have been exempt and that the debtor should not lose his lump sum check because Social Security took two to three years to issue payment.

Every State has its own exemption rules.  And every bankruptcy filing jurisdiction has most likely reached a consensus about this issue.   I suspect that in some jurisdictions, the trustee will ask for some of the lump sum.  Perhaps there are some where the entire lump sum is in play.  The point – ask your bankruptcy lawyer.  It may change when your file and what bankruptcy chapter you choose.

Similarly, you need to tell both your Social Security lawyer and your bankruptcy lawyer about both cases.  Your Social Security lawyer is entitled to get paid for his efforts.  He may need to file a special application in bankruptcy court to be approved as special counsel.  He may also need to file a motion for approval of his fees.

The bottom line: advise both your bankruptcy lawyer and your disability lawyer about your respective cases.  Ask your lawyer to sketch out in writing what you can expect.  I can imagine nothing more frustrating than to hang on for three years waiting for that past due benefit check, only to find that a trustee has grabbed it.

Why Do Physicians Charge to Write Medical Narrative Reports?

Why is it a doctor will say they will help you to get disability because they believe you are disabled but then require extra money just to write an attorney a letter?
–Shannon

Jonathan Ginsberg responds:  Shannon, there is nothing inconsistent in a doctor’s desire to help you and that doctor’s need to earn a living and to provide for his family.  Like lawyers and other service professionals, doctors earn their livings by selling their expertise and time.  Writing letters uses up time and I, personally, have no issue with a physician asking for a reasonable fee when he performs a service for you – especially a service that you and your lawyer will use in a court proceeding.

Why You Should Avoid Changing Lawyers in the Middle of Your Disability Case

From time to time, I receive emails or blog comments from disability claimants who are frustrated with the slow pace of the disability adjudication process and who want to change lawyers.  They often express frustration at how long it takes to even get to a hearing and they think that their lawyer should be doing more to move the process along.

Except in very limited cases, I think that changing lawyers in mid-stream is almost always a bad idea and here’s why:

First, you must realize that your lawyer has no control at all over the long delays in the [tag-tec]Social Security disability[/tag-tec] decision making process.  Social Security backlogs are at record levels throughout the country.  Hearing offices are understaffed and judges have very little help.  Social Security tells us that over the past 10 years, the number of claims being processed has doubled, while the number of judges has declined by 10%.

In Atlanta, where I practice, I regulaly see cases that have been sitting in the hearing office for two, three, even four years.  SSA is sending some of the older files to judges in other States, but the long delays continue.

If there was anything that a lawyer could do to move things along, I would be doing it.  Like most Social Security lawyers, I don’t get paid until I win a case – there is no advantage to me or any lawyer to delay the process.

Years ago, we could sometimes get a case moved to the front of the line by claimant "dire need."   We could claim dire need based on a pending foreclosure, homelessness, serious illness, etc.   We could also sometimes get a case moved to the front of the line by advising our clients to pressure their Senator or U.S. Representative’s office.   At this point, those strategies don’t really work any more.  Your Congressperson as well as the local Social Security office realize that everyone seeking benefits has a certain degree of hardship and they are very reluctant to put one dire need case in front of another.

My point here is that your attorney cannot control Social Security’s backlog, nor can you expect for him to secure special treatment for you.  If another disability lawyer tells you that he has a secret technique to move your case to the front of the line, my guess is that you will be sorely disappointed.

Along these same lines, a second reason to stick with your current lawyer relates to the fee application process.   When you hire a replacement lawyer, the "simple" fee agreement process option disappears, leaving you, your prior lawyer and your new lawyer with a much more complicated option.

Social Security has set out two different methods for lawyers to get paid.  The first method is called a fee agreement process and the second is called the fee petition process.  The fee agreement process is simple – if you and your lawyer enter into a contingency contract based on past due benefits that calls for payment of 25% or less of past due benefits, with a cap of $5,300, Social Security will automatically withhold and pay the lawyer 25% of past due benefits up to $5,300 without any need for the lawyer to file a detalied time and billing statement.

On the other hand, if the fee contract does not provide for a contingency or if there are more than one lawyer claiming a fee, then any lawyer claiming a fee will have to file a detailed fee petition, setting out time records, expenses claimed and other billable time.

Almost every contingency fee contract I have ever seen provides that in the event that the client terminates the attorney, the attorney has the right to ask for fees representing work actually done.  Legal services are not free.  A "no fee unless you win" contract is a trade off – the client can retain counsel without paying up front fees, and the lawyer takes the risk that the judge will not approve the case in exchange for a percentage of the recovery that may or may not equal to the amount of time expended in the case.  If, however, the client terminates the contract prior to the time that the case goes before the judge, the lawyer can and will ask Social Security to approve a fee based on the time actually expended by the lawyer.

So, if you terminate your lawyer in the middle of your case, that lawyer will most likely file a fee petition asking for fees representing time expended.  The new lawyer will not be permitted to enter in to a 25% fee agreement, and he, too will have to file a fee petition to get his fees approved.

What is the practical impact of all this?  You may end up paying more than 25% of your past due benefits as a fee, since any and all of your lawyers will be claiming a fee based on time expended.  Another issue – many busy disability lawyers don’t want to mess with fee petitions.  Fee petitions require a lot of time and often the time claimed will end up less than what the attorney would have earned under a 25% contingency.  Fee petitions can be filed whether or not a case is approved by the judge – as a practical matter, however, disability claimants have very little money and if the case is not approved there is no way to actually collect.  In my practice, for example, I almost never accept cases where there has been another lawyer who will be claiming a fee – I have enough less complicated cases in my file cabinet and I don’t need the hassle.

If your prior lawyer will waive any claim for fees, the new lawyer can use the expedited fee agreement process.

In my experience, many lawyers will be reluctant to take on a client who has fired a prior attorney.  Our law school professors and our malpractice carriers advise us to avoid clients who have fired prior counsel because those clients are the ones who are most likely to be unhappy with a lawyer’s work, regardless of the outcome.

Therefore, unless your lawyer is clearly incompetant, ill or dead, I would urge any disability claimant to stay the course with his present counsel.

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