Termination of Garnishment:

Question: When is a garnishment order terminated in Canada?

Answer: Once the full amount owing under a judgment, enforced through garnishment, is paid, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on both the garnishee and the court clerk, as outlined in Rules of the Small Claims Court, O. Reg. 258/98. This ensures no overpayment occurs and the legal fairness is upheld. Need assistance navigating garnishment rules?

Answer: Connect with Empowered Legal Services for a helpful half-hour consultation.

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.