Termination of Garnishment:

Question: If my creditor fully paid off the Small Claims Court judgment, when do they have to stop garnishment in Ontario?

Answer: In Ontario’s Small Claims Court, 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 on the court clerk to stop the garnishment process, as required by Rules of the Small Claims Court, O. Reg. 258/98 at Rule 20.08(20.2), and a paralegal at SFG Paralegal Services LLP can help you confirm the steps and timing so you do not keep overpaying and can review what notices were (or should have been) sent ; Call (888) 398-0121 to discuss your situation in Ontario.

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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.