To dispute a debt, you must write a letter to the debt-collection agency within 30 days of their initial contact with you. You can send or receive a paidinfull letter to confirm you no longer owe money to a creditor or debt collector.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Write a physical letter directly to them outline the agreement, asking if they agree, and ask for their response and confirmation in writing. If you got a summons that says at the top the words: "CONSUMER CREDIT TRANSACTION," then you or your lawyer must come to court to answer. A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency. Judgment proof means your income is a type or amount that is exempt from debt collection and you have no assets that a company has the right to take. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. A tax warrant is equivalent to a civil judgment against you, and protects New York State's interests and priority in the collection of outstanding tax debt.