It more depends on what the nature of the debt is.
If the debt is due to a tort, you want an attorney that specializes in those actions (auto accident, slip and fall, malpractice), if the suit is over a contract, you probably want a contract lawyer.
can your attorney agree to a settlement in a civil suit without your consent
no
yes it can, they usually return it when the debt is deemed uncollectable then they can transfer it to a attorney for possible suit.
You get to make the decision, not the attorney. You are going to have to pay the fees to the attorney.
In the defense of the Insured.
The attorney who is acting on the behalf or the person(s) and/or creditor who filed the civil suit.
Depends on the nature of the civil suit. If its a simple debt collection lawsuit- a chpt. 7 can discharge the debt. If its a lawsuit seeking money damages due to fraud, then it might not be dischargeable if the creditor files a proof of claim.
a civil suit
That would be a civil law suit. It will vary depending on the state or country.
It depends on what the attorney had to do with losing your home. In order to win in a civil suit, you would need to be able to prove that the attorney did something illegal, or incompetent, and that illegal or incompetent act caused you the loss.
As long as the debt hasn't reached your States SOL for legal recourse
If the creditor has a valid debt and if you are not able to make payments as they come due, the creditor can and probably will file a civil lawsuit against you. Once a creditor realizes that no amount of persuasion out of court will get him anything on the debt, a civil suit is the only recourse to getting paid.