Q: Is it legal for someone to slander and harass you if you owe them money?
Also what if the defendant tries to settle out of court but plaintiff refuses.
Depends on what you mean by "slander" and "harass", both of which have legal standards and definitions that may differ from what you interpret those words to mean.
There is no obligation to settle out of court. Courts exist for when people disagree.
Barry W. Kaufman agrees with this answer
Libel and slander are civil wrongs which the plaintiff can sue over. Whether what was written or said is libel or slander is up the jury to decide. You would want to have an attorney give you an evaluation of your case.
No creditor is ever required to settle with a debtor. If you owe someone money, and he refuses to settle, that's the end of it. He cannot be forced to accept less.
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