This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. What is a discharge in bankruptcy?A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. Form Number, Form Name, Category. B 101, Voluntary Petition for Individuals Filing for Bankruptcy, Individual Debtors. We cannot file a lien on your property when you are in bankruptcy. This letter confirms our law firm will be filing a business bankruptcy case for you in the U.S.. Bankruptcy Court for the District of Minnesota. Write a letter detailing your financial hardship. Explain why you can no longer afford to pay off the principal balance.