Pathological liar

Hi! This situation I am in is definitely a catch 22. Since I started high school, I made very poor decisions in making friends. The first friend I made was very toxic and was mentally ill. She blamed me for her wanting to commit suicide. When our friendship began to break off, one of her friends reached out and finally made me feel like I had positivity in my life! She was fun and everything at first. But she began lying about EVERYTHING. I already have a bad reputation of cutting people out of my life for little to no reason without letting them in because im putting up boundaries. So its been three years almost four, her lies have gotten significantly worse and shes slightly a sociopath. I have avoided her for 5 months but she is still asking me to hangout. I hate doing it this way bc I feel like she doesnt have closure. But she has been disrespectful to me and my bf refuses to be around her. Her lies went from stupid, to telling my bf that she had my phone password why doesnt he have mine and saying that she got a full ride scholarship she did NOT get. If I tell her shes liar, shell make up something Outland ish about me. I dont want to her her either or tell her that. What should I do?