Below, we've created an example of a debt settlement proposal letter that you can use as a guide. Your letter can be sent via your preferred contact method.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Describe any past settlement discussions between you and the other side. Use this letter to help you negotiate a full and final settlement offer with a creditor. I can confirm that I am unable to offer to pay in full what I owe. And I want to offer this as an ex-gratia payment in full and final settlement of the account. Parties submitting class action settlements for preliminary and final approval in the Northern District of California should review and follow these guidelines. " The total amount payable to the Settlement Fund. Reserve Fund: one-time fees or deposits incurred at funding to pay for reserves that support investors' payments in the event of delinquency.