Kentucky bankruptcy attorney John Rogers weighs in on the state of the economy in Kentucky, his law practice, common bankruptcy myths and what it will take to fix the housing crisis.

How long have you been practicing in the area of bankruptcy?

John: I have been practicing in this area of law extensively since about 1992

What do you enjoy most about your job?

John: Without question, helping folks to enjoy their life free of the stress, both economically and physically, that excessive debt can bring on. Also, helping folks to save their homes for their families and children is also very rewarding! I have learned from many years of bankruptcy practice that folks health can be damaged by the stress of debt. Nothing is worth losing your health over.

How many years of experience do you have?

John: I received my law degree in 1989 and have been in private practice since 1991. Prior to entering private practice, I served as a legal counsel to the Governor of Kentucky. Is this the worst you have seen the economy in Kentucky? Yes, without a doubt. Kentucky has fared better than most states, but there is no question we have been impacted by the national and world financial collapse. I think folks have thought that the economy would begin to improve this summer, but we have not seen that improvement in this area. South central Kentucky continues to lose industrial jobs and we don’t see any new jobs coming back into the area.

Where is your office located in Kentucky?

John: We are in Glasgow, Kentucky which is centrally located in South Central Kentucky. Our bankruptcy division serves counties as far north as Casey County, as far east as Russell County, as far south as Monroe County on the state line, and as far west as Logan County. Geographically we are a very diverse district, but our office in Glasgow is about an hour drive or so from most folks in these counties. We are 1 block off of the square in Glasgow, Kentucky. We routinely represent folks from all areas of the bankruptcy division, which is called the Bowling Green division as the court is located in Bowling Green, Kentucky.

Are you active in consumer law organizations?

John: Yes, I am a member of the National Association of Consumer Bankruptcy Attorneys. I also serve as chair of the Kentucky Chapter of this organization. NACBA, as it is more commonly known, is a large national organization that is comprised of attorneys that only primarily represent consumers involved in bankruptcy. The organization is very active and holds two meetings a year in which topics of interest to practitioners are discussed and continuing education is obtained. One of the meetings is the annual convention and the other is a workshop. Many of the members stay connected throughout the year on a listserv which allows members to network and share information and current issues related to bankruptcy law.

If there was one thing you wish the public knew about the bankruptcy process what would it be?

John: Most definitely that filing bankruptcy does NOT completely destroy your credit and that filing bankruptcy does not have the economic and social impact that most folks think that it does. Yes, bankruptcy will have some impact on your credit, but because almost 1.5 million folks annually file bankruptcy, if the banks and financial institutions had a policy of never lending to folks that have filed bankruptcy, they would not be in business. Also, from a social standpoint, although filing bankruptcy is a matter of public record, it is very rare that folks in your community would have specific knowledge of your having filed bankruptcy. Bankruptcy is not something to undertake lightly, but likewise, it is not the “black mark” that many folks think it is.

What types of professions are typically filing for bankruptcy in south central Kentucky?

John: We have clients ranging from self employed farmers, factory workers, insurance agents, clerical office employees, self employed business owners and every profession in between. Financial issues are not unique to any profession or socioeconomic status. It can and does affect us all !

What is the number one type of debt that is causing problems for your clients?

John: I would have to say that it is close race between credit card debt and health care debt. Now let me point out that I rarely, if ever, see folks that have “run up” their credit cards through foolish purchases. Since credit cards can now routinely be used for such common items as groceries and gasoline, and any other common necessities, it is most often the case that a family will suffer a job loss, or other catastrophe, and the credit card is used to supplant the lost income. The thought is that when the job is recovered, they can then pay off the credit card. As we all know, of course, often the job is not returned quickly, and the exorbitant interest rate on the credit card runs the balance up to an unmanageable amount which could never be paid off even in the lifetime of the debtor, or even their children’s lifetime, through minimal monthly payments.

What will it take for the economy of south central Kentucky to survive?

John: A combination of several things must occur. First, the national economy must improve so that banks will begin to loosen their lending capacity and be able to lend again to businesses and industry to enable them to expand to offer new jobs to our workforce. Secondly, our government leaders need to recognize that our economy has changed greatly, probably permanently, and that the recruitment of the large factory to an area is a thing of the past. Government incentives need to be provided to small, family businesses, as 80% of the jobs in an area such as south central Kentucky are in small locally owned businesses.

How would you solve the housing crisis?

John: Impose a one year national moratorium on all pending foreclosures. Then, institute required federal mediation where the mortgage company is required to mediate the dispute between the homeowner and mortgage company and report the results of the mediation on a monthly basis to the state foreclosure judge and court.

For more information on Kentucky bankruptcy attorney John Rogers, visit his National Bankruptcy Forum profile.