Hi,

I am from Toronto Ontario living under ODSP (disability). I am currently in a consumer proposal due to credit card debt. I am paying $100/month for $5000 balance. Couple of months ago, I caused damage to a rental car for which I had no insurance purchased. They have billed me $800 and I am not able to pay this so I have ignored it. I am keep receiving letter from creditor (Credfax) that if ignore their demand to pay within the next 5 days, they may take me to court. They were initially threatening it will affect my credit score. How likely are creditors take you to court for this amount of debt? And can they do anything if my entire wage is through disability?

They usually wait and take a bunch to court all at once. It's cheaper for them that way, but they add all sorts of legal fees to your bill, and get an automatic judgment against you for a much larger amount.
There is no SOL once they get it, so you can't just hope that the years will erase it.
They have to bill you before getting a judgment, but not after.
Of course it will kill your credit score! What did you think? If you have a credit card, you will lose it.

Disability is not 'wages.' No, this kind of debt cannot be taken from your check. Some kinds, like child support or taxes, can, in amounts proportional to the total you receive.
Just hope you never win the lottery or get an inheritance.

Remember that you are taking money from all the rest of us by your way of looking at debt.

For sure I understand but I do think there is an amount limit to who they take to court

Some people say that. But a lot changed after the recession of 2007-8. Suddenly old, old debts by the thousands were brought back up and pursued.
Feel free to think what you want.

For car rentals, most take everyone to court. They have in-house attorneys who as noted file dozens if not 100's at one time.

Collecting debts, big or small is a BIG business, and plenty of collectors are out there with all kinds of tricks to make you pay. From harassing phone calls to freezing your bank accounts, and more, so my answer is yes, they will try to collect by any means necessary.