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An OTH discharge does not automatically bar you from VA benefits. Character of discharge determinations, the insanity exception, discharge upgrade boards, and what benefits remain available.
The VA determines benefit eligibility based on your character of discharge under 38 C.F.R. § 3.12. Not all discharges are created equal, and the characterization on your DD-214 is not always the final word.
| DISCHARGE TYPE | VA BENEFITS? |
|---|---|
| Honorable | Full eligibility |
| General (Under Honorable) | Full eligibility |
| Other Than Honorable (OTH) | Requires Character of Discharge determination |
| Bad Conduct Discharge (Special Court-Martial) | Requires Character of Discharge determination |
| Bad Conduct Discharge (General Court-Martial) | Barred (unless insanity exception) |
| Dishonorable | Barred (unless insanity exception) |
When you file a VA claim with an OTH discharge, the VA regional office conducts a Character of Discharge (COD) determination under 38 C.F.R. § 3.12 before processing your claim. This is a separate adjudication that evaluates whether your service was "under conditions other than dishonorable" for VA purposes. A finding that your service was honorable for VA purposes opens the door to full benefits.
The VA considers the facts and circumstances of your discharge, including: length and character of service before the conduct that led to discharge, nature of the infraction, and any mitigating circumstances. Under M21-1, Part III.vi.1.B, the rater evaluates the entire service record, not just the discharge event.
Certain conduct creates an absolute bar to VA benefits that the VA cannot waive: discharge as a conscientious objector who refused military duties, discharge by reason of sentence of a general court-martial, discharge as a deserter, and discharge of an officer by resignation for the good of the service.
Regulatory bars are rebuttable. They include: acceptance of an undesirable discharge to escape trial by general court-martial, mutiny or spying, offenses involving moral turpitude, willful and persistent misconduct, and homosexual acts involving aggravating circumstances (this bar has been largely superseded by policy changes). For regulatory bars, the insanity exception under 38 C.F.R. § 3.12(b) can override the bar if the veteran was insane at the time of the offense.
File within 15 years of discharge. The DRB reviews your case for propriety (was the discharge proper under regulations?) and equity (was the discharge fair given all circumstances?). The DRB can upgrade your characterization but cannot change the reason for discharge. You can request a personal hearing or a records-only review. Apply through your branch of service.
No time limit (though applying within 3 years is recommended). The BCMR has broader authority than the DRB and can change both the characterization and reason for discharge. The BCMR can also correct other military records errors. This board reviews for error or injustice and has the authority to grant relief that the DRB cannot.
The most successful upgrade arguments include: undiagnosed or untreated PTSD, TBI, or MST that contributed to the misconduct leading to discharge. The 2017 Hagel Memo and 2014 Kurta Memo direct review boards to give "liberal consideration" to PTSD and related conditions. If your discharge resulted from behavior attributable to undiagnosed service-connected mental health conditions, you have strong grounds for an upgrade.