What should I do after being sued by a collections agency? How?

After being sued you should file should file an answer and discovery to make them prove that you owe them the money. It's possible to do it yourself but much better to get a lawyer. This will avoid a default judgment and put pressure on them to settle. They can't delete the lawsuit from your credit report, only report that it was settled.

Is this site charging you by the question? You have a bunch of questions here that need more of a background than you have provided. If you have been sued for a debt, the smart thing to do is to file a formal written response with the court according to the court rules. Having an attorney represent you will make sure this is done correctly. An attorney representing you is much more likely to have the pull with the creditor's attorney to negotiate a fair settlement of this debt. Settlements are put into formal written form and are submitted to a judge for approval. People who just take their chances generally get their faces slapped because unless you know what you are doing & have the experience to do it correctly, you probably won't get it right. I remember learning to bake a cake from a recipe, trying to follow the directions, and having the cake taste terrible. My cakes taste a lot better now that I am older and have some experience.

Your questions strongly suggest you should consult an experienced lawyer in your area. Such a person can review the many relevant facts, and all possible defenses. Whether you hire a lawyer or not, it's a good idea to file an Answer by the due date given on the Summons: otherwise a default judgment will be entered against you for the amount set forth in the complaint. If you settle with the other side, be certain that an original is filed with the court.