This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included.If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court. 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. A pay for delete letter is a negotiation tool to have negative information removed from your credit report. Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. I would tell them you're on disability and provide proof. If they sue you, they cannot garnish any government benefits (i.e.