Termination of Garnishment:

Question: What should a creditor do to stop a garnishment in Ontario after the judgment has been fully paid?

Answer: Denali Paralegal can help you understand what has to happen next when a Small Claims Court judgment is paid in full, including that once the amount owing enforced by garnishment is paid, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and on the court clerk, and keep careful track of the judgment balance to avoid overpayment.   To get accurate steps for your situation in Ontario and the related paperwork workflow, contact Denali Paralegal at (877) 414-4377 and discuss your options with a family law services provider paralegal.

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.

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.