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I have a misdemeanor for shoplifting, a handbag from a department store. It happened nine years ago. I haven't had anything on my record since then. I also have expunged the case.
How should I disclose this on my application? Will this stop me from getting into schools like Northwestern?

You'll have to write a C&F addendum briefly explaining the incident and taking responsibility and all that.

No. It won't keep you out of anywhere that your numbers wouldn't already preclude you from.