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What would you consider my legal problem...criminal or civil?

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I am a carpet installer, I recieved a deposit for carpet, ordered carpet. She changed her mind and wanted money back. It was already ordered. She made a police report, and now I am being charged with felony theft. I agreed to pay her back the money in payments but the money was given to the carpet store and could not be returned. This is the first time this has happened. Should this be a criminal offense or a civil case?