does this mean that the funds that were taken need to be returned?
Probably, but you cannot rely on docket entries alone. You should proceed to the court and ask view the court file. If it's still unclear make a copy to show an attorney. Probably a good idea to get a copy any way once you are there.
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Once you review the actual document, if it says what you think it does, it could not hurt for you to take a certified copy of the dissolution of the writ to a branch of your bank to expedite getting the back to release the funds to you.
It also would be a good idea to remove the funds and put them into another banking institution entirely, one that your creditor would not know about.
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