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

Question: How can a creditor terminate garnishment proceedings after a judgment is satisfied?

Answer:   Once a creditor has received full payment under the judgment, they must promptly serve a Notice of Termination of Garnishment (Form 20R) to both the garnishee and the court clerk.  This requirement ensures fairness and prevents overpayment, as outlined in the Rules of the Small Claims Court, O. Reg. 258/98, specifically at Rule 20.08(20.2).  If you find yourself navigating the complexities of garnishment, Zofa Legal can provide you with valuable assistance to ensure all procedures are correctly followed.  Contact us today to help facilitate a smooth cessation process and avoid potential pitfalls.

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.