This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You have 30 days to file an Answer into your debt lawsuit in California, otherwise you run the risk of a default judgment.Use this letter to help you negotiate a full and final settlement offer with a creditor. My experiences with settling consumer debts with Zwicker and Associates is mixed. Getting served with a Summons and Complaint related to unpaid credit cards is an awful and traumatizing experience for many people. Ask your mortgage lender to accept a full and final settlement offer of payment (sole name). A demand letter often is the first step in the negotiation process for a personal injury claim. How do I go about this?