Hi,

Before proceeding with my questions, I want to give brief description
of my present situation. I have joined an I.T consulting firm. Before
joining them they have asked me to sign on papers stating, if I
terminate job before 12 months from the joining date then I will be
paying Amount XXXX to them. This is to compensate for the use of their
infrastructure, training, relocation and immigration costs paid by
company for my employment. Company said they will be providing me with
an assignment or project, but failed to do so for 3 and half months.
Company said they will not be paying me till I am assigned any project
and so I am not been paid during this period. As I have left the
company for their failure in assigning me a project, they have now
produced a bill of amount XXXX on my name and gave it to credit
collection agencies.
Now I have received a letter from collection agencies stating

?THIS NOTICE HAS BEEN SENT BY A COLLECTION AGENCY. THIS IS AN ATTEMPT
TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT
PURPOSE.
UNLESS YOU NOTIFY THIS OFFICE WITHIN 30 DAYS AFTER RECEIVING THIS
NOTICE THAT YOU DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION
THEREOF, THIS OFFICE WILL ASSUME THIS DEBT IS VALID. IF YOU NOTIFY
THIS OFFICE IN WRITING WITHIN 30 DAYS FROM RECEIVING THIS NOTICE, THIS
OFFICE WILL OBTAIN VERIFICATION OF THE DEBT OR OBTAIN A COPY OF A
JUDGMENT AND MAIL YOU A COPY OF SUCH JUDGMENT OR VERIFICATION?.

Questions:

1.	Can you tell me what immediate action I need to take (regarding the
letter I received)?
2.	What can be further step from the company and how can I handle that?
3.	Is it legally valid that employer can enforce this contract on me?
If so what are the option in defense for me?
4.	Now the company says they have applied for my H1B visa and it has
been approved, Can I apply for new H1B visa from other company?
5.	Is the collection agency goanna report, that goanna affect my credit history?  

Appreciate you answering my questions or showing me the way to get my answers. 

Thanks 
Prash

First of all, seek legal advice. The comany failed to delivery any
form of work, but what have they provided you? You mention 'use of
their
infrastructure, training, relocation and immigration costs' - Have
they relocated you or trained you? I would say that the company has
definately not delivered on their part.

The comany can eventually take you to court to recover an amount owed,
any your credit history may be effected if it gets to this stage, so
definately DO NOT ignore it.

Notify the company immediately that you dispute the debt and are
seeking legal advice and they should place a temporary hold on the
account to prevent further action.

Be careful when signing ANYTHING that ANY employer hands to you in
future, and request that you take whatever it is they want you to sign
away to examine.

Thanks for the response and advise.

I agree with biv2k-ga.  Get a lwayer immediately.  Do not pay your
former employer anything.  This is highly unusual.

I would also suggest that if you have not been paid by the company to
do , then a legal case against them would be much stronger. It could
be argued that you never had a valid employment contract.
It sounds like a very unusual way to do business.