Termination of Garnishment:

Question: After I fully satisfy a Small Claims Court judgment that was enforced by garnishment, how quickly must it be stopped in Ontario?

Answer: Vescio Legal Services can help you stop a garnishment in Ontario after the judgment is fully paid by ensuring the creditor’s duty to act “immediately” under O. Reg. 258/98 (Small Claims Court), Rule 20.08(20.2), including serving a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk and tracking the remaining balance to avoid overpayment  If you need help confirming the correct steps and timing for your file, contact Vescio Legal Services at (416) 400-8255 for guidance.

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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.

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.