Landlord and Tenant both fail to meet verbal agreement for apartment. Landlord taking tenant to court.

First, lets address your concern regarding "not wanting to fight this if it will get you into more trouble." Small claim court isn't exactly "trouble." It is an opportunity for citizens to obtain assistance in resolving disputes. You did not indicate the nature of your probation, but a disagreement over whether additional rent is or is not owed should not result in your being seized and thrown in jail. While $500 is a considerable amount of money, in the general scheme of civil litigation it is considered a nominal amount. The reason is that taking a case to court is an expensive proposition, many people may not find it to be worth the time and trouble to even pursue.

A verbal lease agreement is as enforceable as a written agreement. The problem becomes proving the terms of the agreement when memories fade, and the the relationship at the end of the tenancy is not as cordial as when the tenancy began. It is just good business for both parties to commemorate the agreement in writing to avoid disputes in the future about what was or was not promised to begin with.

I am unable to make the connection between back rent and the defects that you mention, such as the cupboards, wiring, and no sink. How were you able to function for a year with no sink! This would appear to be a critical issue that needed to be addressed if not before you moved in, at least immediately thereafter.

If you state that the landlord is suing you for back rent, did you terminate the tenancy by providing proper notice, and paying rent through the last day that you occupied the premises? If so, your landlord needs to provide you with an itemized statement of any repairs for items taken from your security deposit.

If your question is whether to defend yourself in small claims court, you absolutely should! Your failure to respond will result in the case moving forward without your participation, and probably without good results if you are not there to provide your side of the story.

if you have not already done so, see whether it is possible to come to some sort of compromise with the landlord to resolve the disputed amount. It would be wise to utilize written communication, to avoid the misunderstandings that seem to have arisen in the absence of a written rental agreement.