On which section of the application would a borrower disclose issues impacting repayment ability, like outstanding judgments?

The borrower would disclose issues impacting repayment ability, such as outstanding judgments, in the Declarations section of the application. This section is specifically designed for applicants to provide important information regarding their financial situation, including any legal judgments, bankruptcies, or other circumstances that could affect their ability to repay the loan.

The Declarations section asks direct questions that address circumstances which could impact a borrower's financial health and repayment capability, making it the most appropriate place for such disclosures. Other sections like Assets and Liabilities focus more on the borrower's current financial standing and net worth, while Information for Government Reporting pertains to demographic information required for regulatory compliance, and Section 1 typically covers personal identification data. Therefore, the Declarations section is essential in ensuring that lenders have a complete picture of all potential risks associated with the borrower's repayment ability.