Termination of Garnishment:

Question: How do I stop a Small Claims Court garnishment in Ontario once the judgment has been paid in full?

Answer: In Ontario, Vescio Legal Services can help you take the required steps so a Small Claims Court garnishment ends after satisfaction of the judgment by having the creditor initiate termination “immediately” through service of a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk, and by making sure the creditor has properly tracked the balance owing before stopping the process under O. Reg. 258/98, Rule 20.08(20.2) (which requires the notice once the amount owing under an order enforced by garnishment is paid).  If you are the debtor, employer, or garnishee and you need to confirm timing, documentation, and next steps in Ontario, call (416) 400-8255 so Vescio Legal Services can assist you and help reduce the risk of an avoidable overpayment or 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.