What do you include in a debt collection letter? How to Craft Debt Collection Emails That Actually Lead to Payments?This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. How to use this sample letter: 1. Read the background below. 2. Free sample letters for writing to creditors. Write a letter of authority, cancel a continuous payment, or tell a creditor a debt is statute barred. We send a formal letter to the debtor warning of court action if payment is not received within seven days. If you owe money to a California court and don't pay, it becomes courtordered debt. Courts may send us your debt for collection.