Termination of Garnishment:

Question: What should a creditor do to stop a garnishment in Ontario after the judgment has been fully paid?

Answer:   If you are a creditor in Ontario, Defend-it Legal Services can help you, including with Paralegal Services, Private Investigation, Background Searches & Fingerprinting Agency support, to ensure the garnishment ends properly and without overpayment once the judgment is satisfied. Under Rules of the Small Claims Court, O. Reg. 258/98 at Rule 20.08(20.2), after the amount owing under an order enforced by garnishment is paid, you must immediately serve a notice of termination of garnishment (Form 20R) on the garnishee and on the court clerk, and you should keep careful watch on the balance owing until it is fully satisfied. If you want to confirm the next steps for your specific situation in Ontario, call (289) 275-3513 to get started with Defend-it Legal Services. 

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.