If you ever need to prove that a debt is fully paid and can no longer be collected, then a paidinfull letter can be your best friend. Have you recently settled a debt and are searching for a paid in full letter?Good news, we've got two free sample form letters below. Use this letter to help you negotiate a full and final settlement offer with your lender. This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter. Summary: Sued for debt? Each state has specific requirements for responding to a debt lawsuit, but there are certain steps that are universal.