We'll walk you through how to put together a debt settlement letter that gets to the point and shows your creditors you're serious about sorting things out. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter. In the letter, the first line, tell them exactly what you want. You're writing this letter because the defendant owes you money and you want payment in 10 days. Use this free settlement agreement template to keep the terms confidential between parties. Use it in court if some of them are not met. You will need to draft your own pleading or motion on pleading paper. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.