Termination of Garnishment:

Question: After a debt judgment is paid in full in Ontario, what steps stop the garnishment and who files the Notice of Termination?

Answer: In Ontario’s Small Claims Court, once the amount owing under an order enforced by garnishment is paid, the creditor must immediately serve a notice of termination of garnishment (Form 20R) on the garnishee and on the court clerk, and they must track the balance against the judgment to avoid overpayment per Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2).  If you need help confirming the payoff amount, preparing next steps, or following through with termination to stop deductions, paralegal support from SFG Paralegal Services LLP can help you act quickly in Ontario; call (888) 398-0121.

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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.