This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.Read our Mutual Release and Settlement Agreement template to understand our law firm's procedure in most settlements. This form is furnished to give you a statement of actual settlement costs. The letter structure demands the inclusion of specific sender and debt details, along with a proposed payment amount for debt settlement. I am writing about the money which you are claiming I owe on the above account. I can confirm that I am unable to offer to pay in full what I owe. Fill out a simple, secure Demand Letter questionnaire, and Fast Legal Form filing handles all the legal form filing work. Collection of Debts: Debt collection agencies send demand letters on behalf of creditors to request payment of outstanding debts. We always act in the best interest of all parties to establish a fair and equitable settlement.