This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter.This form serves as a receipt for full payment of the judgment, and formally closes the case with the court. Use this letter to help you negotiate a full and final settlement offer with a creditor. State the date, name of arbitrator, and decision. b. State whether you expect a jury verdict to be different. c. The small claims demand letter can open up a dialogue between you and the defendant and help you reach some sort of settlement. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. Below, we've created an example of a debt settlement proposal letter that you can use as a guide.