It looks like there are a couple things going on, the trunk appears to have a bleeding canker disease caused by Phytophthora. The tree could have been infected through a wound caused by a mower or weed eater. The other possible cause is girdling roots just below the surface. It looks like a small root is wrapped over the part of the trunk that shows the signs of the canker. There are no treatments available to control this disease or correct the girdling roots.
For additional help and information contact the Oldham County Cooperative Extension Office. The website link is http://oldham.ca.uky.edu/ 

Do you think this tree will survive?

It looks pretty involved but I don't know if it will survive.
The best thing you can do to help the tree is to make sure it is not stressed. Make sure the area where the bark has fallen off is clean and free of bark, leaves, twigs and grass clippings. Fertilize the tree in late September. if you fertilize the lawn in September(best time to fertilize lawns in KY) it should be enough for the tree too. Have the soil tested to determine the correct amount of fertilizer to apply.
Make sure the tree gets enough water equal to about one inch of rain a week.  

Thank you.

You are welcome. if you have any questions please contact us at the Oldham County Extension Service office.  http://oldham.ca.uky.edu/