Termination of Garnishment:

Question: How quickly must a creditor stop garnishment after a judgment is satisfied in Ontario?

Answer: Once a creditor receives full payment under a judgment, they are legally obligated to immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk, as per Rules of the Small Claims Court, O. Reg. 258/98. This ensures fairness by preventing overpayment. If you need guidance on managing garnishments or other legal matters, consider contacting SFG Paralegal Services LLP for support.

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.