Use this letter to help you negotiate a full and final settlement offer with your lender. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.Loan settlement, often referred to as debt settlement, is a negotiation process between a borrower and a lender to resolve a debt for a reduced amount. Edit, sign, and share sample letter settlement online. No need to install software, just go to DocHub, and sign up instantly and for free. Personal loan settlement process, also known as personal loan defaulter settlement refers to an agreement between a lender and a borrower. Fill in your contact details, account number and any extra information you want to include in the grey shaded areas. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Date the letter was written. In the wake of the Check 21 Act (see Section 2.2.