Termination of Garnishment:

Question: What should a creditor do to stop a Small Claims Court garnishment immediately after the judgment is paid in Ontario?

Answer: In Ontario Small Claims Court, once the amount owing under an order enforced by garnishment is paid in full, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk, and carefully track the balance owing to avoid any overpayment; O. Reg. 258/98 at Rule 20.08(20.2) confirms this “notice once order satisfied” duty. For help preparing the paperwork and next steps for paralegal-run garnishment termination workflows, DefendCharges.ca™ can assist across Ontario; call (647) 559-3377.

Add this website to Google Preferred Sources

Cessation of Garnishment Upon Satisfaction of Judgment

After a Creditor has received full satisfaction of the Judgment, the Creditor must, “immediately”, initiate termination of the garnishment proceedings by serving Notice of Termination of Garnishment (Form 20R) upon the Garnishee and on the Court Clerk.

Note: Please contact DefendCharges.ca™ by phone at: (647) 559-3377 to discuss any specific questions that you may have.

The Creditor, for plain and obvious reasons of fairness, being to ensure avoidance of overpayment, is required keep careful watch upon the balance owing against the Judgment.  As above, when the Judgment is satisfied, the Creditor must "immediately" bring the garnishment to a stop.  In this regard, the Rules of the Small Claims Court, O.  Reg. 258/98, state:

Conclusion

The Creditor holds the duty to keep proper track of the balance due against the Judgment and to initiate the administrative process of ceasing the garnishment procedures.