Termination of Garnishment:

Question: How can a creditor in Ontario stop a garnishment right away after the judgment has been fully paid?

Answer:   Freed Legal Services can help you follow the required small claims steps to cease garnishment after satisfaction of the judgment: once the amount owing under an order enforced by garnishment is paid, the creditor must immediately serve a notice of termination of garnishment using Form 20R on the garnishee and on the court clerk, so the garnishment is brought to a stop and no further money is withheld in error.   If you want practical help tracking what is still owed and preparing the termination paperwork correctly under Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2), call (800) 716-1897 to get started.

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.