First, you need to get past this 'denial' issue. Your post said, "The judgement was only for around 1,500 dollars which I do not owe". Clearly, if you have a judgment AGAINST you, you DO owe it!
Okay, now to your other question....
Q1) "If I have a vehicle that is paid for but titled in me and my wife's name, can it be seized for payment of the judgement?"
A1) ANY non-exempt assets that you have (in your name OR your joint name) can be seized to enforce a judgment. This is normally done by a "Writ of Execution". Here is a link to the Alabama Rules (Rule 69) detailing the process and your right to attempt to claim an exemption:
http://www.alacourt.org/Publications/Rules/Civil/rule69.htm
According to the Alabama Code, here is a list of your allowed exemptions:
"Section 6-10-6 - Personalty.
The personal property of such resident, except for wages, salaries, or other compensation, to the extent of the resident's interest therein, to the amount of $3,000 in value, to be selected by him or her, and, in addition thereto, all necessary and proper wearing apparel for himself or herself and family, all family portraits or pictures
and all books used in the family shall also be exempt from levy and sale under execution or other process for the collection of debts. No wages, salaries, or other compensation shall be exempt except as provided in Section 5-19-15 or Section 6-10-7."
Full exemptions Code:
http://www.legislature.state.al.us/CodeofAlabama/1975/126874.htm
Q2) "With her name being on the title even though she had nothing to do with the judgement , can they take the vehicle?"
A2) Yes. See the above exemptions.