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.A debt collection letter informs clients about their unpaid bills. How to use this sample letter: 1. Read the background below. 2. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You can settle a debt at any stage of the lawsuit process. Just respond to the case, send an offer, and get the settlement agreement in writing. Credit and Collection collects delinquent debts on behalf of Miami-Dade County departments. If you doubt that you owe a debt, or that the amount owed is not accurate, your best recourse is to send a debt dispute letter to the collection agency.