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.The Consumer Financial Protection Bureau offers sample letters the debtor can use to dispute a debt. When drafting a debt settlement letter, you'll want to include basic information, including your name and account number. To respond, file a written Answer where you reply to each claim from the Complaint and assert your affirmative defenses. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample.