Termination of Garnishment:

Question: After I’ve fully paid the Small Claims Court judgment, what steps must a creditor take to stop a garnishment in Ontario?

Answer: In Ontario small claims, 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 they should also keep careful track of the judgment balance to avoid overpayment before filing the termination paperwork, per Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2).  If you’re dealing with continuing deductions after full satisfaction, PKM Legal Services can help you review the payoff status and the required termination steps so you can act fast with a paralegal in Ontario; call (519) 410-5250 for guidance and next steps.

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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 PKM Legal Services by phone at: (519) 410-5250 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.