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. I am now experiencing financial hardship due reduced income. Unlock expert strategies for efficient debt settlement letter data extraction. Elevate your skills with top techniques and tools in our guide. You must fill out an Answer, serve the plaintiff, and file your Answer form with the court. Generally, this is due within 30 days after you were served. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You have 30 days to respond to a debt lawsuit in California.