When a veteran's discharge from a period of service is Under Other Than Honorable (OTH) conditions, VA does not automatically deny benefits tied to that period, but it must first conduct a Character of Discharge determination under 38 CFR 3.12. This regulation lists specific circumstances that bar benefits — for example, discharge for willful and persistent misconduct, due to an offense involving moral turpitude, as a conscientious objector who refused military duty, or for desertion. If none of these bars apply, or if an exception applies, VA can still find the discharge to be honorable for VA purposes, which is called an "honorable for VA purposes" determination.
Important exceptions exist even when a bar would otherwise apply. Under 38 CFR 3.12(b) and related case law, if a veteran was insane at the time of the offense leading to discharge, benefits are not barred. There is also a "compelling circumstances" analysis that can apply to willful and persistent misconduct bars, where VA is supposed to weigh the seriousness of the offense, length and quality of service, reasons for the misconduct, and any mitigating circumstances such as undiagnosed mental health conditions, sexual trauma, or hardship.
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →When a veteran has multiple periods of service, VA evaluates character of discharge separately for each period. An honorable first enlistment generally remains valid and does not get reopened; the COD review applies specifically to the later OTH period and determines whether conditions or injuries from that period can be service connected.
Strong evidence to submit includes the DD-214 and any administrative separation paperwork explaining the reason for discharge, service treatment and mental health records from the period in question, any line-of-duty or misconduct investigation records, buddy statements describing circumstances, and a personal statement connecting any diagnosed or undiagnosed condition (such as PTSD, depression, or TBI) to the behavior that led to separation. A nexus statement from a mental health provider addressing insanity or mitigating circumstances can be particularly persuasive.
If a VSO is not providing adequate help, a veteran can switch representatives at any time, free of charge, by filing VA Form 21-22 with a different Veterans Service Organization or hiring an accredited attorney or claims agent, including organizations that specialize in discharge upgrade and character of discharge cases such as the National Veterans Legal Services Program.
The concrete next step is to request, in writing, the specific regulatory bar VA is citing and then gather and submit targeted evidence addressing that exact bar, ideally with help from a new accredited representative experienced in character of discharge cases.
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