A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors. Understand your options when the insurance company makes a lowball injury settlement offer, and see a claimant's sample response letter. You have 1030 days to respond to a debt collection lawsuit in New York. You can use the SoloSuit Answer form or other state forms to help you get started. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. He gets reparations and accommodations mixed up. A very funny scene in Episode 2.