Could we create an escrow account to use to payoff old dept in collection?

No law I know of stands in the way of your trying to do this. It does not seem as likely to be effective as a Chapter 13, under which, if things fit as they should, you can pay what the rules say you can afford for a period of 36 or 60 months, and have any unpaid balance discharged at the end of the period. Generally, if you tell the truth and the papers are set up right, creditors cannot successfully object. Find a skilled BR lawyer to advise and represent you. It's almost always worth the investment.

Are you talking about making a payment arrangement? Because once a creditor has an order to allow them to garnish your pay, they are unlikely to accept this unless you pay them directly and they can absolutely rely on receiving the money. No second chances are likely.

You'd need to get the agreement of all your creditors because they could garnish your escrow account.

Such an account is unlikely to succeed in fulfilling your goal of creating a better method to pay off all old debt and to rebuild credit and trust.

Any agreement is possible if both parties agree, and installment payment agreements are common. Get it in writing.