Termination of Garnishment:

Question: Can Caruso Legal Services help me stop a Small Claims Court garnishment in Ontario once the judgment has been fully paid?

Answer: If you have fully satisfied the Small Claims Court judgment being enforced by garnishment, Caruso Legal Services can help you take the required next steps to end the garnishment without delay by ensuring the creditor serves a Notice of Termination of Garnishment (Form 20R) on both the garnishee and the court clerk “immediately” after the paid amount is received so you avoid overpayment.  Under O. Reg. 258/98, rule 20.08(20.2), “Once the amount owing under an order that is enforced by garnishment is paid, the creditor shall immediately serve a notice of termination of garnishment (Form 20R) on the garnishee and on the clerk.”  If you are dealing with delays or confusion, contact Caruso Legal Services at (289) 271-0488 for practical paralegal support in Ontario.

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.