This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter.Read our Mutual Release and Settlement Agreement template to understand our law firm's procedure in most settlements. You must fill out an Answer, serve the plaintiff, and file your Answer form with the court. Generally, this is due within 30 days after you were served. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. A sample lump sum settlement offer is on page 6. Parties submitting class action settlements for preliminary and final approval in the Northern District of California should review and follow these guidelines. If the Court denies approval, no settlement payments will be sent out, and the lawsuit will continue. You have 30 days to file an Answer into your debt lawsuit in California, otherwise you run the risk of a default judgment.