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. Debt Settlement Letter Templates. This article will make the process of responding to a debt lawsuit a little bit easier and tell you how to answer a summons for debt collection in Florida. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Want to settle your debt? Rejecting a settlement letter could either lead to further negotiations or to a courtroom trial where you seek a jury award for your losses. What happens if you reject a settlement letter depends on why you have rejected it and where you are in the negotiating process.