What if a contractor stole $7,000 from you?

[Lamont Marable]

Hypothetically speaking, let's say that you found a contractor that was cheaper than the rest.  Their communication up to the exchange of the first draw check, perfection.  You performed a simple background check, asked other investors and only found one that knew their work.  The one that knew their work simply said  "just keep an eye on them".   You truly want to give this contractor a chance because you trust your reference.  So you meet them, they show you their work and it makes you feel good about your choice.  Then after, the contract is signed and the first quarter of the draw is paid and cleared, you receive a peace order 5 days later in the mail.  At this point, you can't contact your contractor due to a peace order with false claims or find another contractor because it would be in breach of the contract.  If this "made up story" happened to you, what measures would you take going forward or what would you have done differently from the start? 

Keep in mind this is your first deal into Real Estate Investing and your first fix and flip.  Will this push you away or make you stronger?