Form 20R – Notice of Termination of Garnishment

Jurisdiction: Country: Canada | Province or State: Ontario

What is a Form 20R – Notice of Termination of Garnishment?

Form 20R is the Small Claims Court form you use to stop an active garnishment under a Small Claims Court case in Ontario. You file it with the court to formally end a Notice of Garnishment that is currently requiring an employer, bank, or other third party (the “garnishee”) to pay funds toward your judgment. Once issued and served, this notice tells the garnishee to stop taking money and tells the court to stop processing further garnishment payments on that file.

In Small Claims Court, garnishment is one way to collect on a judgment. You can garnish wages, bank accounts, and certain other debts owing to the debtor. When the debt is paid or you decide to stop, you need a clear, court-recognized way to turn off that enforcement. Form 20R is that switch.

Who typically uses this form?

Judgment creditors and their representatives use it. That includes self-represented creditors, law firms, collection departments, landlords, trades, contractors, and small business owners that enforced a judgment by garnishing wages or bank funds. You can also see it used by insurers acting as subrogated creditors, property managers handling rent arrears judgments, and professional service firms.

You would need this form when your enforcement goal has been reached or circumstances have changed. Common reasons include full payment of the judgment, a settlement requiring you to halt enforcement, a court order that suspends enforcement, or a decision to withdraw the garnishment. Without this notice, a garnishee may keep deducting funds that are no longer owed, which creates headaches for everyone and risks overpayment.

Typical usage scenarios

You garnished an employee’s wages and the debtor has now paid the balance, including interest and costs. You settle the case with a lump sum payment, and the deal requires you to stop the garnishment immediately. The court sets aside the judgment or grants a stay, and you must terminate any active enforcement. You discover the garnishment was issued in error, such as for the wrong debtor, and you need to shut it down fast. In each case, Form 20R gives the garnishee clear written authority, from the court file, to stop withholding.

When Would You Use a Form 20R – Notice of Termination of Garnishment?

You use Form 20R as soon as you no longer want or are no longer entitled to collect through an existing Notice of Garnishment. You should not wait for a pay cycle to pass. If you wait, a payroll department may continue to deduct money. That can lead to overcollection and refund requests, and it can strain relationships with employers and banks.

Here are practical situations where you would use it. You represent a small construction company that won a judgment for unpaid invoices. You garnished the debtor’s employer. The debtor then pays the remaining balance directly to you. You complete and serve Form 20R right away so the employer stops deducting wages on the next payroll run. Or, you are a landlord who garnished a former tenant’s bank account. You agree to a settlement with installments paid by e-transfer. You file and serve Form 20R to avoid freezing or diverting funds that should not be touched under the settlement.

If you are a business owner acting for yourself, the same rules apply. Once you track that the full balance is paid—including any post-judgment interest and enforcement costs—you prepare Form 20R and notify the garnishee and debtor. If a court order stays enforcement pending an appeal, you file Form 20R so the garnishee stops deductions. If a bankruptcy stay applies, you should not continue enforcement. While you may need legal advice about the stay, you typically terminate any active garnishment using Form 20R as part of compliance.

Employers and banks also rely on Form 20R for clarity. Payroll teams need a written, court-file notice before they stop a garnishment. They are cautious because they face liability if they ignore a valid garnishment. When you serve them with Form 20R, they can update their systems and stop withholding. That protects them and you. It also ensures the clerk’s office has a final record that enforcement is done.

Self-represented creditors use this form when they have been collecting through the court and the account is now satisfied. Law firms file it on behalf of clients to keep files clean and avoid any allegation of wrongful collection. Property managers and in-house credit teams use it to maintain accurate records and close the matter in a defensible way.

Legal Characteristics of the Form 20R – Notice of Termination of Garnishment

Form 20R is legally significant because it operates within a court enforcement process. A Notice of Garnishment is a court-file document issued and enforced under the Small Claims Court rules. It compels a garnishee to pay money toward the judgment. Form 20R is the formal notice that ends that compulsion. It tells the garnishee and the court that the underlying hook for continued deductions is no longer operative.

Is it legally binding? Yes, when properly completed, filed, and served in the same action in which the Notice of Garnishment was issued. The garnishee is entitled to rely on it. The clerk updates the enforcement record, and the garnishee stops making payments for future amounts. Money already deducted before the garnishee receives the termination notice is typically still payable to the court under the original notice. Everything after receipt must stop.

What ensures enforceability? Accuracy, proper service, and alignment with the underlying case file. The form uses the same court file number, parties, and garnishee name as the active Notice of Garnishment. You must ensure the amounts are satisfied or the legal reason for termination exists, such as a stay or withdrawal. You then serve the garnishee and the debtor. Once served, the garnishee must stop deducting new amounts. If they do not, they risk having to return funds or face compliance issues in court.

General legal considerations apply. First, only terminate when you are confident the balance is paid or you have a clear legal reason to stop. That balance includes court-awarded costs, interest up to the termination date, and any enforcement costs allowable under the rules. Second, keep a clean paper trail. Your file should show how you calculated the balance and why you terminated. Third, timing matters. Wage garnishments run on payroll cycles. Banks process at specific times. Serve the garnishee as soon as the debt is satisfied to avoid overcollection.

Privacy and accuracy matter as well. Use the correct legal names and addresses for the parties and garnishee to avoid confusion. If there are multiple garnishments against the debtor from different creditors, your termination affects only your file. It does not cancel other creditors’ garnishments. Finally, if a court order stayed or set aside the judgment, terminate the garnishment promptly. Continuing to garnish when enforcement is stayed or the judgment is set aside can create liability.

How to Fill Out a Form 20R – Notice of Termination of Garnishment

Follow these steps to complete, file, and serve the form correctly. Keep your sentences short, your numbers accurate, and your timing tight.

1) Confirm you are the right filer.

• You must be the judgment creditor or the creditor’s authorized representative.
• If you are a lawyer or paralegal, confirm your authority on the file.

2) Gather your file information.

• Court file number from the Small Claims Court action.
• The court location where the Notice of Garnishment was issued.
• Exact names of the plaintiff(s) and defendant(s) as they appear on the court record.
• The garnishee’s full legal name and address used on the Notice of Garnishment.
• The date the Notice of Garnishment was issued and served.

3) Verify the reason for termination.

• Full payment received, including any interest and costs.
• Settlement requires you to stop the garnishment.
• A court order stayed enforcement or set aside the judgment.
• You are withdrawing the garnishment for another valid reason.
• Confirm the date when termination should take effect.

4) Reconcile the account balance.

• List the judgment principal.
• Add court-awarded costs and fees in the judgment.
• Add post-judgment interest calculated to the termination date, using the rate in the judgment or the default rate.
• Add enforcement costs that are recoverable under the rules, if any.
• Subtract all payments received, including amounts paid through the garnishee and any direct payments.
• Confirm the balance is zero if you are terminating due to payment in full.
• If you are terminating for another reason, ensure the reason is documented.

5) Complete the court heading.

• Enter “Ontario Superior Court of Justice – Small Claims Court.”
• Enter the court address of the issuing court office.
• Enter the court file number exactly as it appears on your case.

6) Identify the parties.

• List the plaintiff(s) and defendant(s) exactly as on the judgment.
• Include mailing addresses if the form provides space.
• Consistency with the original notice helps the garnishee match its records.

7) Identify the garnishee.

• Enter the garnishee’s full legal name and address.
• Use the same location or branch identified in the Notice of Garnishment.
• If the employer or bank has multiple branches, name the correct site for payroll or processing.

8) State the termination details.

• Indicate that the Notice of Garnishment issued under this file is terminated.
• Provide the effective date. Use a date that allows the garnishee to stop the next deduction.
• Select or state the reason: paid in full, withdrawal, stay of enforcement, order set aside, or other reason supported by your file.

9) Provide the payment summary (if space is provided).

• If the form has a section for amounts, insert the judgment amount, interest, costs, total paid, and balance.
• If there is no space, prepare a short calculation sheet for your file. You can provide it on request.

10) Sign and date the form.

• Sign as the creditor or as counsel or agent.
• Print your name and contact details for service.
• Include your firm name and licence number if applicable.
• Date the form on the day you finalize it.

11) Make copies.

• Prepare one copy for the court, one for the garnishee, and one for the debtor.
• Keep a stamped copy for your records after filing, if available.

12) File the notice with the court.

• File the completed Form 20R at the Small Claims Court office that issued the Notice of Garnishment.
• Filing ensures the court stops processing further remittances under this garnishment.
• Ask the clerk about processing times so you can plan service.

13) Serve the garnishee promptly.

• Serve the garnishee by a method permitted for Small Claims Court documents, such as personal service, mail, courier, fax, or email where allowed.
• Use a method your garnishee accepts for legal notices, and confirm receipt when possible.
• Serve in time for the garnishee to stop the next deduction cycle.

14) Serve the debtor.

• Provide a copy to the debtor to keep all parties informed.
• Good practice avoids later disputes over timing and amounts.

15) Prepare and keep proof of service.

• Complete an affidavit or certificate of service naming the person served, method, date, and address.
• File proof of service with the court, or keep it ready to file if the court requests it.
• Proof of service protects you if there is a dispute about when deductions should have stopped.

16) Follow up with the garnishee.

• Confirm that payroll or banking systems reflect the termination.
• Ask the garnishee to process the termination before the next deduction date.
• If a deduction occurred after service, ask the garnishee to reverse it or return the funds according to their procedures.

17) Confirm final payments with the court.

• The garnishee may still send amounts deducted before receiving the termination.
• The clerk will process any funds already received and remit according to the file.
• Check your account to make sure all amounts line up with your reconciliation.

18) Close your enforcement file.

• Save the filed notice, proof of service, and final accounting.
• Note the termination date in your case management system.
• If you have any security or other enforcement in place, review whether those should also be released or maintained.

Practical examples help you see what to include and why. In a wage garnishment, you calculate interest up to the effective termination date you put on the form. You confirm the employer’s payroll cycle and serve them before the payroll cutoff. You then track that the next pay shows no deduction. In a bank garnishment, once the funds you expected have been received and the balance is paid, you file and serve the termination so the bank releases any remaining holds on the account.

Common pitfalls are avoidable with care. Do not terminate before you confirm that post-judgment interest and costs are covered, unless a settlement says otherwise. Do not assume the clerk will tell the garnishee for you. The garnishee relies on your served notice. Do not leave the effective date blank or unclear. An unclear date can cause payroll errors. Do not rely on a phone call alone. Always serve the written Form 20R and keep proof of service.

If you discover an error after filing, act quickly. For example, you terminate believing the account is paid, but you missed one last interest accrual. You can seek a voluntary payment from the debtor for the small shortfall. Avoid reissuing a new garnishment for a nominal balance if a simple request will do. If a larger amount remains due because of a calculation error, speak with the debtor and, if needed, consider further steps only after careful review.

If you are terminating due to a stay or set-aside order, match your effective date to the court order. Serve the garnishee immediately to stop deductions. Keep a copy of the order ready in case the garnishee asks for confirmation. Many payroll departments request the termination notice and may also ask for a copy of the order for their file.

If you are a law firm or corporate credit team, build a checklist into your process. The checklist should include balance reconciliation, settlement terms, timing of payroll cycles, filing, service, confirmation, and file closure. This reduces risk and protects your client’s interests. It also builds trust with garnishees who appreciate timely, clear instructions.

Finally, remember the scope of the termination. Form 20R stops only the specific Notice of Garnishment identified on the form. It does not cancel other enforcement methods. It does not release liens or other steps unless you take additional action. If you want to release other enforcement, prepare the appropriate releases for those steps as well.

If you follow these steps, your Form 20R will be complete, clear, and effective. You will stop the garnishment cleanly, avoid overcollection, and maintain a defensible record that the enforcement has ended.

Legal Terms You Might Encounter

Garnishment means a court-enforced way to take money owed to the debtor by a third party. In this context, the third party is the garnishee. Your Form 20R tells that third party to stop taking money.

Notice of Termination of Garnishment is this form. You file it to end the garnishment. It signals that no more deductions should be made under the existing notice.

Judgment creditor means you, if you are owed money under the court order. When the debt is satisfied, you use this form to stop the deductions.

Judgment debtor means the person or business that owes the money. This form helps ensure their wages or bank account are no longer garnished once the balance is paid.

Garnishee is the third party holding or paying money to the debtor. It can be an employer or a bank. You send a copy of this form to the garnishee so they stop deductions.

Notice of Garnishment is the earlier court document that started the deductions. Your Form 20R shuts down that specific notice. It does not affect any other enforcement steps.

Satisfaction of judgment means the debt has been paid in full, including interest and costs. You should only terminate once the full balance is cleared. If you end early, you may forfeit the easiest way to collect.

Post-judgment interest is interest that accrues after the court’s order. Include it in your payoff to ensure the garnishment truly ends the debt. If you miss it, a small balance can remain.

Enforcement costs include filing fees and other reasonable collection costs. Confirm whether they are recoverable and included before you file the termination. If they are outstanding, note that on your balance worksheet.

Service means giving required parties a copy of the form after filing. You must notify the garnishee. You should also notify the debtor, so everyone has the same information.

FAQs

Do you need to file Form 20R when the debtor pays in full?

Yes. The garnishee needs a formal direction to stop. File the form with the same court office that issued the garnishment. Then serve the garnishee with a copy. This helps avoid extra deductions from the debtor.

Do deductions stop immediately after you file?

They stop when the garnishee receives and processes the notice. Payroll and bank systems work in cycles. If you file close to a payroll cutoff, one more deduction may occur. Serve it quickly and confirm receipt to reduce delay.

Do you need to attach proof of payment to the form?

The form itself does not usually require attachments. Still, keep proof handy. You may need it if someone disputes that the balance is paid. You can also share a simple payoff summary with the debtor for clarity.

Do you have to serve both the debtor and the garnishee?

You must serve the garnishee. You should also give a copy to the debtor. This avoids confusion about when deductions will stop. Keep proof of service for your records.

Do you file the form at the same court location that issued the notice?

Yes. File it with the same court office that issued the garnishment. This keeps the court record consistent. Ask the clerk about any fee and the preferred filing method.

Do you use Form 20R to pause a garnishment temporarily?

No. This form ends the garnishment. If you only want a pause, consider an agreement with the debtor. Then decide whether to terminate or keep other enforcement open. If you end it and need to resume later, you may need to start over.

Do you need a separate termination for each garnishee?

Yes. Each garnishment notice is specific to one garnishee. If you have multiple garnishees, prepare a termination notice for each one. Serve each garnishee separately.

Do you risk problems if you delay filing the form after full payment?

Yes. The garnishee may keep deducting. That can create overpayments and refund headaches. It can also cause trust issues with the debtor or their employer. File and serve promptly once paid in full.

Checklist: Before, During, and After

Before signing

• Confirm the court file number and court location on your garnishment documents.
• Confirm the names and roles: creditor, debtor, and garnishee.
• Reconcile the full balance, including interest and costs.
• Verify the payoff date. Calculate interest up to that date.
• Gather proof of payment: receipts, banking confirmations, or settlement records.
• Confirm that all employer or bank fees are addressed if applicable.
• Identify any other active garnishments or enforcement steps.
• Get current contact details for the garnishee’s payroll or legal department.
• Prepare a short balance summary for your files.
• Decide the effective date you will communicate to the garnishee.
• Check if any court fee applies for filing the form.

During signing

• Verify the court location matches the original garnishment.
• Confirm the file number is correct and legible.
• Spell party names exactly as in the court record.
• Confirm the garnishee’s exact legal name and address.
• Reference the original notice of garnishment date, if requested.
• State clearly that the garnishment is terminated.
• Fill every required field. Do not leave blanks.
• Use full legal names, not nicknames.
• Date and sign in the correct area. Print your name and title.
• If you sign as an agent, confirm authority to sign.
• Avoid handwritten edits that cause confusion. Reprint if needed.

After signing

• File the form with the court office that issued the garnishment.
• Ask the clerk how you will receive the filed copy.
• Serve the filed notice on the garnishee promptly.
• Provide a copy to the debtor for their records.
• Confirm receipt with the garnishee’s payroll or legal contact.
• Track the first pay cycle or banking cycle after service.
• If a deduction occurs after service, follow up immediately.
• Record the date and method of service in your file.
• Store the filed form, proof of service, and payoff records.
• Reconcile your trust account or ledger to zero for this file.
• Update your collection system to show the garnishment is closed.

Common Mistakes to Avoid

Ending the garnishment before all interest and costs are paid. This leaves a small balance. You may need to restart enforcement to collect it.

Failing to serve the garnishee after filing. The court file will show termination, but payroll or the bank will not know. Deductions may continue.

Using the form to pause rather than end. This notice terminates the garnishment. If you only want a pause, do not file this form until you are sure.

Listing the wrong court file number or court location. The notice may not match the court record. The garnishee may question it or ignore it.

Delaying service close to a payroll cutoff. This increases the chance of one more deduction. Serve quickly and confirm receipt to reduce this risk.

What to Do After Filling Out the Form

File the notice with the same court office that issued the garnishment. Ask if a fee applies. Request a stamped copy for service.

Serve the garnishee promptly. Use a method that provides proof of delivery. Email alone may not be enough unless the garnishee confirms receipt.

Notify the debtor. Send a copy for transparency. State when you expect deductions to stop.

Confirm processing with the garnishee. Contact payroll or the legal department. Get written confirmation of the stop date.

Monitor the next pay or banking cycle. If a deduction still occurs, ask the garnishee to reverse or refund it to the debtor. Provide the filed notice again if needed.

Handle overpayments quickly. If funds reach you after termination, reconcile them. Return any excess to the debtor or direct the garnishee to do so.

Close your enforcement file. Mark the garnishment as terminated in your system. Store the filed notice, proof of service, and payoff documents.

If you made an error on the form, fix it. Prepare a corrected notice and re-serve it. Tell the garnishee which notice controls.

If new amounts arise later, assess your options. A new enforcement step may require new filings. Consider a fresh notice if you need to garnish again.

Keep good records. Clear documentation prevents disputes. It also helps you respond if the court or a party asks for details.