Did not pay fare

Yes. Not cost effective to seek a cure for fine only penalty.

Would I have a case against the owner of the van due to the fact that he was negligent in leaving the keys in the car?

Unlikely. They weren't the direct and proximate result of your damage.

What are my legal options up to and including arbitration or small claims court?

I encourage you to move on. Not cost effective to litigate this amount and your burden to prove items left behind will be difficult.

I would like to no about filing for Bankruptcy?

Hard to respond to this one...I encourage you to call a local attorney and discuss with them to see what help they can provide.

What's the best thing to do I can't afford to pay them by friday,is there anything they can do to me or mess up my records??

Disregard the letter. If they serve you with a summons to appear then become interested.

How do I stop harrassment without filing bankruptcy

Discuss payment of the loans as you promised when you entered the contracts or discuss bankruptcy with a professional.

How do I get warrant recalled and my license back?

You must hire legal counsel experienced in the matter and act immediately.

Prosecutor just hasn't charged you yet...stay tuned it will likely occur if you received a ticket.

Is my situation considered child endangerment

You'll be the first to know...they will either arrest you or issue you a ticket immediately.

C&I: Take the ticket to an attorney in your area and let them address it for you...it happens. Pay a fine and move forward and drive carefully...