Termination of Garnishment:

Question: How can Forseti Legal Services help me stop a garnishment right away after my Small Claims judgment has been fully paid in Ontario?

Answer: If you’ve paid the full amount under a Small Claims Court order that was enforced by garnishment, a Paralegal at Forseti Legal Services can help you confirm the balance is satisfied and prepare the required termination steps, because the creditor must “immediately” serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk once the amount owing is paid (Rules of the Small Claims Court, O. Reg. 258/98 at Rule 20.08(20.2)).  In Ontario, acting quickly helps avoid unnecessary deductions, and you can request a free guidance call at (705) 806-7577 to review your garnishment paperwork and next steps.

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.