Can you pay off your iva with the money you are earning yourself?

[MrBT96]

Hi all! I hope everybody is well and not stressing to much! So what it is, I’m coming up to the end of my apprenticeship. And will be going self employed. And I will be going on price work, that means I get paid for what I do. And my wages will be increasing. Not drastically. I mean maybe an extra £100-200 a week. It just depends on how I get on that week at work. I’m a wall and floor tiler by the way if you was thinking haha and I’ve sort of got a plan in my head. I have already told my iva firm I will be going self employed and that my wages will change. And they said all I need to do is tell them that I’ve gone self employed. And that if my payments need to change then they will let me know after my yearly review... but the plan I hope I can go with is that I was going to save some money, well whatever is possible that I can save during my time in the iva. And hopefully by the time the year is out I will have saved enough too give offer them a final settlement. But I was wondering is this something I can do with money I’ve saved myself? Please help!! I hope you all have a nice evening/morning, I hope to hear back soon

[Foggy]

As long as the money you use is your legitimate share of extra earnings there should be no problem. However, being self employed might mean that the creditors consider your disposable income has been undercalculated if you manage to save up a sizeable sum.

I would get the IP to confirm everything in writing regarding income and extra income as your earnings will no longer follow the basic PAYE rules regarding overtime.