To fill out this letter, clearly write your name and address at the top. Include the date and the collection agency's name and address.Rejecting a settlement letter could either lead to further negotiations or to a courtroom trial where you seek a jury award for your losses. A debt settlement letter is a tool to negotiate with your creditors and settle your debt at a lump sum payment you're comfortable making. 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. 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. If you disagree with the offer, you can decline it. However, rejecting a settlement offer isn't as simple as saying, "Sorry, I won't accept it." This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.