This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. It only takes 15 minutes to fill out the form, which will include your responses to each allegation from the Complaint and affirmative defenses. Although you may win a case, the Conciliation Court is not a collection agency and does not contact the defendant to collect payment. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. A wellwritten debt settlement letter is crucial to the debt negotiating process.