Car repaired Place fixed my car after a car who was 100% liable in August are trying to sue me after they confirmed they were paid, is this possible?

I received a call from the mechanic saying how was the car i let him know the ride was smooth. I received a check around October from responsible person car insurance, i called the Car Repair place to confirm they had been paid and the mechanic advised they had been. Since January another person has been calling me saying the check i received was for them and that i owe them and they are taking me to court. i let her know i confirm with her office that payment was received and they told me yes and the payment was cashed and used. she told me the manager i spoke with no longer works there and that was in the past balance is due now or they will garnish. i told her i wasnt able to pay it back, i am having a child in 3 months, we are on one income and the most i could even do for them is to pay 200 a month when i return from maternity leave. she again threatend with taking me to small claims court. Can their office get a judgement or garnish my wages?