Termination of Garnishment:

Question: What happens to a garnishment when the creditor’s judgment is fully paid in Ontario Small Claims Court?

Answer: In Ontario Small Claims Court, once the amount owing under an order 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 the creditor should keep careful track of the balance owing to avoid overpayment. O. Reg. 258/98, Rule 20.08(20.2),   If you’re dealing with a garnishment after payment or you need help confirming the termination steps, Denali Paralegal can guide you through the process for family law-related debt and enforcement concerns in Ontario, call (877) 414-4377.

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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.

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.