This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details.I am now experiencing financial hardship due reduced income. This form is a template for an answer to a summons and complaint from a creditor. This form can be used statewide. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Debt Settlement Offer Letter. This is a type of offer where you ask the lender to accept part of the amount you owe and write off the rest. For example, this version uses FDCPA section numbers in the headings.