This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. What should I include in a debt settlement letter?List your name, account information, the original creditor of the debt, and the debt collection agencies identifying information. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. This letter can be used to ask collection agencies to provide you with information concerning their basis for claiming that you owe a debt. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Relating to the debt. Sample Letter – Asking for a debt write-off when someone is deceased. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details.