Money lender harassing by charging high rate and filing court case

Borrowed 70,000 in year Feb 2014, at 2.5% interest rate, from financer in Phagwara. He took 2 signed blank cheques and some signed empty forms from girl. She made 40,000 payment monthly in about a year (no proof). After that couldn't pay him, and financer took her to court. The case is for 1 lakh plus (based on empty signed cheque), at 5% interest rate, and another cheque for 2 lakhs She went with elders to talk to financer, but he said 2.5 lakhs needed within 5 days to take back the case. She couldn't pay. She has no income, a drunk worthless husband and 6 year old daughter. What can she do?