This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included.You can use the following Cease and Desist letter to debt collectors as a template. This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons. 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. Want to settle your debt? (1) A payment is not demanded or due; and. LJC - Laughlin Justice Court.