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Good morning. I certainly understand the concern and situation. Based upon what you shared above, she would need to answer Yes. I say this because even though the case was dismissed ( which is NOT a conviction), she was still charged with the crime, which they inquire about. Of course, it looks great that the case was dismissed but she may have to explain, the basis for which she was arrested.
I do not think they would reject her for this. I say this because the case was dismissed. That means that the State decided to not prosecute. It is possible that the arrest/charge was wrong, it was not her, they made a mistake or she had a defense, all which can be explained. It is at her discretion to answer No but they may them try and get answers from her about this, if they see it. Yes, she could always explain the situation or oversight but sometimes it is best to be honest, so it does not come back to hurt her
Do you know why the case was dismissed?
She needs to be truthful on the application. Her failure to do so and if they find out about this, could result in them denying it, before anything else. However, if she answers Yes and provides an explanation, then it would be reviewed and considered and it will show her good character. If she answers No and they see it, they may simply think she is dishonest and trying to hide it. I know it is a very hard decision to make but it is better to be truthful and disclose it, so it does not come back to hurt her. I say this because they may see it later on and could terminate her for lying on the application. Please let me know if there is anything else, as I would be happy to respond. If not, please just remember to kindly rate may help at the top, so the site will give me the proper credit.
It is likely best to address the fact that the case was dismissed. It is hard to justify why she was arrested for this and why they believed she stole and she should simply say that the case was dismissed.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!