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?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. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. See a sample Answer Form for Consumer Credit Transaction. This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons. COMMERCIAL DIVISION SAMPLE CHOICE OF FORUM CLAUSES. Purpose.