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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. You have 35 days to respond to a debt collection lawsuit in New Jersey. To respond, you must draft and file a written Answer into your case. This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons.