Can my former landlord sue me for future rent? (MN)

My landlord was supposed to provide an itemized list of deductions, instead, today I received a letter that simply reads "your [sic] not getting the deposit back." When I called to inform her that she needs to provide this list and also include accrued interest, she claims she only sent the letter to fill a legal void and is intending on taking me to court for damages not covered by the damage deposit as well as rent for every month the apartment sits empty.

As far as the damages go, she needed to paint and replace a 12x12 section and a 12x3 section of carpet, however, she stated that she is replacing the appliances and redoing the bathroom as well as the kitchen counter and backsplash and suing us for those costs not covered by our $975 deposit. We really can't do litigation right now as we're already dealing with an issue with the house that we just bought regarding the seller's failure to disclose/hiding a major plumbing issue.

Please help me with good advice