This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Fill out a simple, secure Demand Letter questionnaire, and Fast Legal Form filing handles all the legal form filing work.This form is furnished to give you a statement of actual settlement costs. The Consumer Financial Protection Bureau offers sample letters the debtor can use to dispute a debt. General Information. An Offer in Compromise is the settlement of a tax liability for less than full payment. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.