Termination of Garnishment:

Question: If my Small Claims Court judgment has been fully paid in Ontario, do I need to stop a garnishment and what form is required?

Answer: If a creditor has received full satisfaction of a Small Claims Court judgment that is enforced by garnishment, the creditor must immediately stop the garnishment by serving a Notice of Termination of Garnishment (Form 20R) on the garnishee and on the Court Clerk, and the creditor should monitor the balance owing to prevent overpayment under O. Reg. 258/98, Small Claims Court rules, Rule 20.08(20.2),   If you’re the debtor and the garnishment continues after you’ve paid, Empowered Legal Services can help you assess whether the termination notice was properly served and advise next steps with a professional legal advocacy team serving Ontario, call (855) 808-6510 for guidance today.

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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 Empowered Legal Services by phone at: (855) 808-6510 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.