The first step in a debt settlement negotiation with a bank, credit card company, or collection agency is to confirm the debt belongs to you. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court.Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. 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. In the sample letter, fill in your personal information.