Below, we've created an example of a debt settlement proposal letter that you can use as a guide. Your letter can be sent via your preferred contact method.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. This article will make the process of responding to a debt lawsuit a little bit easier and tell you how to answer a summons for debt collection in Texas. This article explains your rights and options under the law if you are facing debt collection. A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency. Download this free sample of the debt settlement agreement template and know how to confirm the verbal debt settlement agreement in writing. Use this letter to help you negotiate a full and final settlement offer with your lender. "Agreement" has the definition set forth in the preamble, including all exhibits.