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Sample Letters

Debt Settlement Offer in response to creditor's proposal

If you are not sure about how to counter your creditor’s debt settlement offer, here is a sample of a Debt Settlement Offer Letter in Response to Creditor’s Proposal:



Dear Sir,

I really appreciate your company's willingness to work out a debt settlement agreement with me. At present, I am badly short of funds due to (Give explanations why have you defaulted on payments, job loss, illness, etc) and cannot afford the amount you have proposed.

So, I would like to propose a counter offer.

I would like to offer an amount of $ to settle the outstanding debt amount of $with you.

I would also like to request the following conditions as a part of my settlement offer:

  1. My account will show "paid in full" with no future money owed associated with the account number mentioned in this letter.
  2. Any lawsuit filed against me will be dismissed and no future litigation related to account number listed above will be filed against me.
  3. All the negative listings related to the account mentioned above will be removed from the credit bureaus.

I have several debt accounts with other creditors, and will only be able to pay those creditors who are willing to accept a settlement amount that I can afford.

I have enclosed a copy of my financial statements for your consideration.

If my settlement offer is acceptable to you, then please sign the debt settlement agreement enclosed with this letter and return a copy of the agreement to me.

As soon as I receive the signed agreement from you, I will send you the money order in the amount I have proposed.


Your Signature_______________________

Your Name_________________________

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  • The debt settlement program typically lasts between 6 months to 4 years time.
  • At least 30% of the debt amount per creditor needs to be accumulated in the trust account for OVLG to give the creditor any settlement offer.
  • Not all creditors or debt collectors will accept a reduction in the balance, interest rate, or fees a customer owes such creditor or debt collector.
  • Pending completion of the represented debt-relief services, the customer's creditors or debt collectors may pursue collection efforts, including initiation of lawsuits.
  • That the use of the debt-relief service will likely adversely affect the consumer's creditworthiness, may result in consumers being sued by their creditors, and may increase the amount owed to creditors as a result of the accrual of additional fees and interest.
  • Savings a customer realizes from use of a debt-relief service may be taxable income.