Legal Question in Credit and Debt Law in Florida

Loan Received from a Private Party...Legal Collection Practices

I was loaned $19,500 from a private individual(co-worker), but was unable to pay back the entire amount in full, due to loss of the property value when I sold the apt. to pay back the loan...I have paid back most of it, but there is a $3,450 balance, which I'm paying monthly $400-$500/Mo. The party now has threatened to contact my/our employer to try & garnish my wages and is threatening to add a $200/wk penalty for every week the money is not paid. They have cashed the 1st check, and accepted it. I did sign a promisory note which I was unable to fulfill in it's entirety, & I am NOT disputing the $3,450, but can this person LEGALLY discuss such a PRIVATE/PERSONAL situation with My Employer? Is that either invasion of privacy,unfair collection practices, defamatory, or IN ANY WAY...ILLEGAL? I never signed an agreement that made any mention of INTEREST PAYMENTS, they are also trying to make me pay them back for going to see & having their lawyer write me a letter. Is that legal as well? I fear being disciplined or even losing my job if they discuss this with our employer's payroll or legal dept.

What can I do? I am doing the best I can to repay them and initially they accepted Mo payments. I am unable to get a loan to repay them

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