So...I have this neighbour..don't know her very well (just as a neighbour)but had an idea she was a bit of a drama queen (big mouth and critisizm of others sort of way about her, a bit gossipy, etc)...anyway her ex is an experienced joiner and handyman and I asked if he might be interested in doing some work I needed help with to decorate my house, etc....made a list (the main things I wanted doing) and he agreed a price and started the work...great...all going well...nice chap and all that and I'm very happy with the work he's done....
anyway, he did some extra stuff needed and I had written a new list for these things to keep track and work out a price to add on, etc
I get a text from the neighbour (his ex) saying I'm taking the piss!!!
and I'm 'making' him do extra work, etc and he wants his bloody money and won't be doing anymore of the work!!!!.....
I text back that I have no intention of ripping him off and have kept a note of things and of course will be paying more than the original price, etc....
This fell on deaf ears and she has threatened me and my property!!!!
I am single with my DS so became quite nervous about this
I spoke to the local police...they advised that I should meet and pay this guy in a public place and get him to sign a receipt to prove I have paid him and that it is settled and both parties are happy.....I'm thinking yes this is great advice, the police gave me an incident reference and to phone back if I have any problems....I felt better about things then
I sent him a text to explain I would have his money for him today...a receipt for him to sign for the payment and just let me know where and what time he wanted to meet me somewhere
He refuses to sign the receipt and told me to 'forget it and keep my money'...he can't sign anything because he is unemployed and should not be working and not declaring it.....well the police said do not pay him without getting a receipt as you can't then prove you have paid and it could cause more trouble for me with these people.....denying payment and whatever hassle.....
What to do???.....sitting thinking about this and have now had a note put through my door by 1 of them.....apparently she is sending her son round to my house tomorrow?? and I better have this money for him.....[OMG!!!] 
It's kinda late and not urgent right now and I'm sure the Police have much better things to do with their time tonight so I'm not phoning them yet but think that I should....
Can't believe I have got into this situation, am scared they may take revenge on my property...sheds, car, etc over this...feel very threatened and concerned about what to do to resolve this....
Will I just give her son the money or do I stick to the Police advice and insist on getting the receipt signed before I give him the money????
What am I going to do???....This is madness and soooo unexpected...what kind of people are these and what have I done to deserve this mad behaviour....I can't seem to fix this and wonder about what may happen next....I have nobody to call that can help in RL except the Police....
Sorry this is lots to read....wanted to explain it though....