Termination of Garnishment:

Question: How can a creditor ensure garnishment is halted after the judgment is satisfied?

Answer:   Once a creditor has received full satisfaction of the judgment, they must immediately serve a Notice of Termination of Garnishment (Form 20R) to both the garnishee and the Court Clerk.  This process is crucial to prevent overpayment and must be executed without delay, as outlined in the Rules of the Small Claims Court, O. Reg. 258/98, which mandates prompt action upon satisfaction of the judgment.  At Anderson Aylwin Begg & Co. Legal Services Professional Corporation, we guide creditors through this process efficiently to ensure compliance with legal requirements while safeguarding their interests.

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.