Termination of Garnishment:

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

Answer:   In Ontario Small Claims Court, if the amount owing under a judgment that is being 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 balance to avoid any overpayment; Ajodhia Legal Services can help creditors and debtors understand the practical steps and timing under O. Reg. 258/98 (Small Claims Court Rules) at Rule 20.08(20.2) and prepare the paperwork so the garnishment stops properly, contact Ajodhia Legal Services at (647) 882-8205 for assistance in Ontario.

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.