Termination of Garnishment:

Question: If a judgment debt is fully paid in Ontario small claims, how do I stop a garnishment right away?

Answer: In Ontario’s Small Claims Court, when the amount owing under a garnishment is paid, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on both the garnishee and the court clerk, and the creditor should keep careful track of the remaining balance so the garnishment is not continued past satisfaction under Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2).  For help managing the termination paperwork and next steps, Freed Legal Services can assist parties in Ontario with garnishment cessation and debt-collection process issues; call (800) 716-1897.

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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.