State: Georgia

I filed for bankruptcy two months ago (January 2004).

I had paid the premium to my car insurance company on June 1, 2003, for the period June through December 2003. I made this one-time payment on American Express.

Fast-forward to January, when I filed for chapter 7 and Amex was the primary account included in the bankruptcy.

A week ago, I receive a letter from the auto insurance co. telling me there was a "system error" with my June 1, 2003 payment and that I now owe the full amount of the premium from the last half of 2003.

Can they do this? Legally, do I owe the payment I've already made? This was over 8 months ago -- isn't there a statute of limitations?

I can't afford to make the $750 payment or I certainly would, out of ethical obligation. Now I'm concerned that my insurance co. will cancel me and keep the $750 I paid (cash) in January of this year for Jan-June 2004's premium.

Thanks in advance for any advice.

jazzgirl

edited to add: I called the insurance company, who told me that they were showing a "system error" payment because I paid the full six-month premium on a credit card with revolving credit, not one that is paid in full each month. So, they refunded the payment to Amex and are now showing a payment due on my insurance record. They said I would need to take the issue up with Amex directly.

But since they only just now brought that issue to my attention rather than soon after the payment posted (or at least during the six-month period), not to mention they just "happened" to bring the issue to light after my bankruptcy, I'm hoping I have some type of legal recourse. Thanks once again for any suggestions as to what to write them.