I’ll be straight up and say that, because I’ve never gone through the process myself – or been through it with someone else either, I’m unfortunately not well versed on the litigation process outside of the research I’ve conducted. You would be quite wise to speak with a Lawyer or a Paralegal for solid advice there.

That said, I'd be quite surprised if B.M.O wouldn’t be happy to avoid the litigation process, as their legal team can be quite expensive – and if I recall correctly, it’s either the legal costs cannot be passed along to you, or, only a very small portion can. Unfortunately, I can’t recall which legislation covers that subject, at the moment. … Regardless, have you offered a verbal proposal of say $250/month on condition that the interest is frozen? That may be a good starting place if you can afford those payments. Worst case scenario they reject your offer and the matter continues along. If they accept your offer, though, be certain to request that they supply you with a written copy of that contract, outlining all the agreed upon terms, before sending any funds their way. Just makes sense to play it safe.

Thank you very much for your help Ottawa Chap. Would it be realistic to request from BMO that they cancel their claim? I tried to do some research and apparently I can either:
-Accept the claim that I owe them
-Accept the claim but states that I can't fully pay at this time
-simply disagree with the claim.

But is it possible not to get it that far and make further arrangements with BMO or is it better if I accept the claim and let it go further through the court?

Would you advise consulting a lawyer?

Thank you again

Have a look at the following section found in the Rules of Civil Procedure. Prior to entering the court room, you’ll be put through a mediation process where you’ll have an opportunity to explain your financial situation and present your payment plan to an independent 3rd party. If the bank doesn’t accept your offer at that time (btw: only offer what you are sure you can pay per month), then the matter will go before a judge who may just give you better payment terms then what you originally presented.

RULE 24.1 MANDATORY MEDIATION
PURPOSE
24.1.01 This Rule provides for mandatory mediation in case managed actions, in order to reduce cost and delay in litigation and facilitate the early and fair resolution of disputes. O. Reg. 453/98, s. 1; O. Reg. 198/05, s. 2.

Link to the full act can be found here:

http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_900194_e.htm#sched24.1.01

Good evening,

I have just received a letter from the Toronto Small Court claim regarding money I owed to BMO Mastercard. I had been making small monthly payments and I had had recently some financial issues and didn't pay for 4 months. I was wondering if there is something that I could do in order for the claim to be withdrawn from the court and I owe them $9,000 and I can pay up to $300 a month. Please advise me on what I should do.

Thank you