TX may allow you to pay the judgment amount to the court, which would then label it satisfied and send the fund on to the Creditor. You should talk with a local attorney to see if this is possible. The attorney could also negotiate a settlement on your behalf. It might be worth it to get this behind you.
Once a creditor obtains a court judgment, they don't have to accept payments from you but can seize anything they can find that isn't protected by a state exemption. I am posting a link to a description of exemptions allowed in all 50 states for you to review.
I appreciate that you would like to settle the debt for less than the total amount the court awarded, which would include interest & legal fees, but the creditor isn't buying it.
Whether or not you should pay the judgment to the original creditor or to the collector is really a decision for the original creditor, not you, to make. Ask the creditor who the payment should go to. Some creditors sell debts, others simply assign debts to be collected on a commission basis.
Hope this perspective helps!
If the creditor is refusing to accept full payment of the judgment, take a look at Texas Civil Practices and Remedies Code Sec.31.008 for information about how to deposit an unclaimed judgment with the court. I'll include a link to the Code below.
My comments are for general informational purposes only, and do not apply to any particular set of facts. Reading or using this information in any way does not create an attorney-client relationship.