Termination of Garnishment:

Question:After my creditor’s Small Claims Court judgment is fully paid in Ontario, what do they need to file to stop a wage garnishment?

Answer:In Ontario 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, so payments do not continue past satisfaction; Rules of the Small Claims Court, O. Reg. 258/98 at Rule 20.08(20.2).  For help reviewing whether the termination notice was properly handled and what to do if it was not, Legacy Legal Services can assist Ontario debtors and legal professionals across Windsor and surrounding communities, by phone at (226) 246-3825.

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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.

Note: Please contact Legacy Legal Services by phone at: (226) 246-3825 to discuss any specific questions that you may have.

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.