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. To dispute an invalid debt use this disputing debt sample letter. If you've fallen behind on your bills, especially credit cards, don't panic. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. 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. To respond, you should answer each issue from the Complaint, assert your affirmative defenses, and file the Answer document with the court.