I kept getting harrassings calls from a collection agency and a legal frim saying that a suit is being file against me

If it is a collection firm, you can write to them and tell them to not call, but they can still make calls to verify your location, etc.  They can also sue.  The information is or will be on your credit report.  It seems odd that a law firm is involved with such a small amount involved, but I guess times are tough for some lawyers.