Termination of Garnishment: Mandate to Issue Prompt Notice to Cease Payments to Court Clerk

Question: When must a creditor stop a Small Claims Court garnishment in Ontario after the judgment is fully paid?

Answer: In Ontario, once the amount owing under an order enforced by garnishment is paid in full, the creditor must immediately serve a Notice of Termination of Garnishment (Form 20R) on the garnishee and the court clerk under Rules of the Small Claims Court, O. Reg. 258/98, Rule 20.08(20.2), to prevent overpayment.   Reznik Legal Services provides Ontario paralegal services to help debtors, creditors, and garnishees confirm the remaining balance, prepare Form 20R, and take steps to end a garnishment properly.

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.