Settlement for a bank loan with the collection agency

Hi Lawyers,

I have outstanding dues on my personal loan and the bank filed a case on that. I am trying to get a settlement through the debt collection agency.

They asked me to sign a financial letter for that, along with it, they need all my documents. Is this mandatory?

Is there any issue in signing the financial letter?

Is there any issue if I could not make the payment on the mentioned date?

Please advise.