Below is a sample, fillintheblank letter that you can use as a guide for disputing a debt with a collector. You can send our Motion to Compel Arbitration to the creditor, which compels them to follow through with the arbitration clause in the contract.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 to pay a certain settlement amount to the collection agency. I am writing in regards to the above-referenced debt to inform you that I am disputing this debt. Specify that the proposed payment will work as a complete settlement for the entire debt. Summary: Sued for debt? Each state has specific requirements for responding to a debt lawsuit, but there are certain steps that are universal. Notice Inviting Informal Bids. 2.