This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Then, begin negotiating for a lower principle. This is called garnishment. Settlement agreements. The employee in charge of the account should promptly contact debtors who are delinquent on debt settlement payments and find out. The L.A. Times is a leading source of breaking news, entertainment, sports, politics, and more for Southern California and the world. The media could not be loaded, either because the server or network failed or because the format is not supported.