This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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. Access to Forms The Superior Court of Orange County offers several options to assist the public in completing court forms. You can use the sample debt letter below as a template for your own debt settlement effort. Customize it to fit your individual circumstances. Use this letter to help you negotiate a full and final settlement offer with your lender. The main purpose of this letter is to list your damages and ask the insurance company for a settlement. It also shows that you're ready to settle the claim. Writing a debt validation letter can keep you from paying a bogus debt collection.