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.Download this free sample of the debt settlement agreement template and know how to confirm the verbal debt settlement agreement in writing. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. After the clerk fills out this form, you get a copy of it. Records showing the amount and date of any prior debt settlement agreement in connection with the debt agreed to after the effective date of these regulations. When you are finished, you can print your completed form.