We'll walk you through how to put together a debt settlement letter that gets to the point and shows your creditors you're serious about sorting things out. 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. What should I include in a debt settlement letter? You have 30 days to respond to a debt lawsuit in California.