Termination of Garnishment:

Question: After my Small Claims Court judgment is fully paid in Ontario, how do I stop a garnishment and what Notice form is required?

Answer: If the judgment amount enforced by garnishment is fully paid, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and on the court clerk under O. Reg. 258/98 (Small Claims Court), Rule 20.08(20.2),   and you should keep the payoff balance documented to avoid overpayment.   If you are dealing with a garnishment that has not been stopped after satisfaction, Anderson Aylwin Begg & Co. can have a paralegal team help you track the balance owing and get the right termination paperwork moving in Ontario.   Call (905) 686-8080 to get started without delay.

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.