They won't put you in jail. We do not have debtors prisons. They can garish your bank account or your paychecks - which will be hard with the odd jobs. So, it sounds like you are virtually judgment proof. Definitely fight the case and make them prove the debt. However, tell them that they are trying to get blood from a stone. If they will not leave you alone, then consult with a bankruptcy attorney.
The main methods of collection for a debt of this sort are garnishment of wages or bank accounts. If you don't have wages or a bank account or substantially more than $5,000 in equity in your vehicle, there is very little that can be done to collect the debt.
You can reach Harkess & Salter LLC at (303) 531-5380 or info@Harkess-Salter.com. Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.
I wouldn't worry about the car and there is no jail for inability to pay a debt. You can be subjected to a judgment, but you appear to be collection proof ... for now. If a collections agency is coming after you, dispute the debt and their right to collect on it. If they persist, talk to a lawyer. Some laws allow for attorney fees if you win.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.