Termination of Garnishment:

Question:After a small claims judgment is paid in full in Ontario, how do I stop an ongoing garnishment? ?

Answer:Freed Legal Services can help you stop a garnishment once the judgment is satisfied by ensuring the creditor serves Notice of Termination of Garnishment (Form 20R) immediately on the garnishee and on the Court Clerk, and by keeping careful watch on the judgment balance so you avoid continued overpayment.   In the Small Claims Court, the requirement is set out at O. Reg. 258/98, Rule 20.08(20.2), and getting the proper notice filed and served on time is key.   If you need help preparing and sending Form 20R and confirming the garnishment stop steps in your case, call (800) 716-1897.

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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 Freed Legal Services by phone at: (800) 716-1897 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.