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.Use this letter to help you negotiate a full and final settlement offer with a creditor. Use this letter to help you negotiate a full and final settlement offer with your lender. I am now experiencing financial hardship due reduced income. This article will make the process of responding to a debt lawsuit a little bit easier and tell you how to answer a summons for debt collection in Texas. Print and fill out the appropriate form. You may mail the form or bring it in person to the Justice Court. Free sample letters for writing to creditors. Write a letter of authority, cancel a continuous payment, or tell a creditor a debt is statute barred.