Termination of Garnishment:

Question: When a Small Claims Court judgment is fully paid in Ontario, how quickly must a creditor stop wage or bank garnishment?

Answer: Under Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2), once the amount owing is paid the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk, which helps prevent overpayment.  PKM Legal Services provides Ontario paralegal services to help you confirm the balance owing, document satisfaction of judgment, and take practical steps to end a garnishment promptly.

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.