Termination of Garnishment:

Question: After I pay my Small Claims Court judgment in full, how do I stop a garnishment in Ontario?

Answer: If your Small Claims Court judgment is paid in full, the creditor must immediately stop the garnishment by serving a Notice of Termination of Garnishment (Form 20R) on the garnishee and on the court clerk, and you should confirm the creditor is tracking the remaining balance correctly against the judgment.  Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2).  For help handling this process with paralegal support and property management admin in Ontario, Mole Legal Services can assist by reviewing your documents, advising on next steps, and reducing the chance of overpayment, call (647) 709-5157 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.

Note: Please contact Mole Legal Services by phone at: (647) 709-5157 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.