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She can take you to small claims court for money only, she cannot ask the small claims court to make you sell the vehicle. You are both equally responsible for the payments, however if she is using the car she should be making the payments. The court will not make you pay if she gets to drive the car. The bank can make either one of you or both of you pay.
She can sue you for half the payments. If you can make the payments now, please do so. She is ruining your credit as well as her own.
You can argue back to the court that since she has the car she should be making all the payments. It would become a swearing match in court.