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.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Use this letter to help you negotiate a full and final settlement offer with a creditor. This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter. Use this letter to help you negotiate a full and final settlement offer with your lender. Download this free sample of the debt settlement agreement template and know how to confirm the verbal debt settlement agreement in writing. You have 30 days to respond to a debt lawsuit in California. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms.