What is the safe way to proceed after receiving legal notice from the bank?

Hello, My name is Leela. In the year 2016 ICICI bank offered a loan for ongoing poultry farming business people. They offered to give us a loan against the running business and showing one house as the additional guarantee. This loan has to be repaid at the end of one year which is by April 2017 in our case. But we were not able to pay that loan on time. The total loan was 40 lakhs. we paid 20 lakhs and it's interest. Whenever we are able to pay , we are making random payments continuously. Even the bank has started charging penalty interest rates also. I requested bank to convert this loan to personal loan with a higher interest rate. But they don't have that option. I don't have any intention of not paying this loan. Just the situations are not working as expected. Now the bank is about to take legal action. 1. What is the worst risk involved after receiving this legal notice apart from entering our names in to NP category and which in turn effects the cibil score? 2. Do we have to go to jail? 3. Will the court help us to pay in installments? 4. Does bank hava a legal right to force us to pay after issuiing the legal notice also? Thank you very much Leela Karumanchi