You might want to contact Footloose, an ex-accounting professor who potentially would be the only blogger who might answer the accounting, but not the legal aspects, of your case. However, he rightly left in disgust last year because the forum owner let the blog degenerate into a complete farce with idiots and hackers. The remnants of a forum are kept around in order for credit card spam to generate advertising revenue; that's about it.
Anyhow, the decision of what you should do will be made for you very shortly if the bank proceeds with the lawsuit. At minimum, you'd better hope they stick with Small Claims Court and don't go apply to Divisional Court.
To see what can happen, see Nmorete4's thread below from 2011 over a similar debt with RBC. Read it through and you'll see why I told you to get legal advice.
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Under NO circumstances, listen to anything Stephen Hoddinott (Concerned Canadian) advises.