Termination of Garnishment:

Question: If a judgment has been fully satisfied, how do I stop small claims garnishment in Ontario?

Answer: To stop a garnishment after the judgment is fully paid, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk under Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2).   For plain fairness and to avoid overpayment, keep careful track of the remaining balance owing against the judgment before filing the termination.   Empowered Legal Services is a professional legal advocacy team in Ontario that can help you confirm the correct termination steps and documentation for garnishment cessation; call (855) 808-6510 for guidance today.

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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.