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Termination of Garnishment:
Mandate to Issue Prompt Notice to Cease Payments to Court Clerk
Question: When must a creditor terminate garnishment proceedings after a judgment is satisfied?
Answer: Once a judgment is fully satisfied, the creditor is obligated to "immediately" serve a Notice of Termination of Garnishment (Form 20R) on both the garnishee and the court clerk, as per Rules of the Small Claims Court, O. Reg. 258/98. This ensures fairness and prevents overpayment. Interested in securing your legal rights with precision and care?
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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:
Notice Once Order Satisfied
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.
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.
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