Creditor Proposal to Settle Account

[Date]

Creditor                                                          *****SENT VIA CERTIFIED MAIL*****

City, State, Zip

RE:   PROPOSAL TO SETTLE ACCOUNT

Dear [name]:

Based on our recent discussions, you are aware that I am in financial difficulties because of [reason] and am not currently able to make payments on my account.

My income barely covers my living expenses, and I have no assets to sell in order to pay you or my other creditors.

I am committed to paying this debt and am willing to offer a settlement of $_____ as payment in full.

Additionally, I ask that you report this account as “paid in full” and “paid as agreed” all major credit reporting agencies.  I know you have discretion to report as you deem appropriate so long as consistent with federal law. If you agree to these conditions, please notify me in writing and I will immediately facilitate payment.            

If you have any questions, please contact me at the address listed below.

Thank you.

Sincerely,

Bruce Smith

Address

City, State, Zip