Settlement demand letters are used in most personal injury cases to begin settlement negotiations. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.Clearly state your demand. Below is a sample settlement letter from the paying agency to the OAG authorizing the settlement or judgment and amount of the claim. The main goal of settlement demand letters is to outline what happened and request (demand) payment for your injury. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. I can confirm that I am unable to offer to pay in full what I owe. And I want to offer this as an ex-gratia payment in full and final settlement of the account. Attorney for Don Davis. Date. George Parker Young serves as Of Counsel in the Business Litigation Practice Group of Haynes and Boone, LLP in Fort Worth.