Wachovia Dealer Services Made a claim on our insurance for damage to repossessed car Santa Ana California

We had a car loan with WFS then Wachovia took it over. We went through financial issues, and had to surrender the car back to them. They got the car back on December 10th, our bankruptcy was discharged in January, now on February 6th they called and made a claim on our insurance saying we hit an object on December 6th. When my insurance company called me I told them that we had the car parked in a garage, well it turns out Wachovia, called and made up a date when they new we still had insurance on it. According to our insurance company it is legal for them to do this, and we will be forced to pay for the damage before they auction the car off. I do not understand how they can come back on us after we gave back the car, for damage, that happened over a year ago. ( I hit a metal object in the road) all it did was scratch the paint on the bumper. I have spoke to several people, and no one has heard of a company ever doing this. I am curious if anyone else has. Their estimate of the damage is $880.00, I dont understand why they think we have this kind of money when we just filed bankruptcy and had to give up my car because we couldnt afford it.

Becky
Belgrade, Montana
U.S.A.