Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter. The plaintiff will report to the. You have 30 days to respond to a debt lawsuit in California. When drafting a debt settlement letter, you'll want to include basic information, including your name and account number. Use this letter to help you negotiate a full and final settlement offer with a creditor. We'd like to create a strategy and debt settlement plan specific for you, and our experience will help us figure out the best solution for true debt relief.