You raised your right hand and served. But now, because of the way your service ended, the VA might tell you that you don’t qualify as a “veteran.” For many, that’s a crushing blow. After everything you gave, the thought that one mistake—or circumstances outside your control—could block you from care, compensation, or recognition feels devastating.
But here’s the truth: new VA rules, exceptions, and legal strategies are opening doors for more former service members than ever before. If you were discharged under conditions other than honorable, or with a discharge that raises questions, you may still qualify for benefits through a Character of Discharge (COD) Review.
This guide explains what a Character of Discharge review is, how the VA makes its decision, and the steps you can take to improve your chances of success.
What is a Character of Discharge (COD) Review?
A Character of Discharge Determination (sometimes called a Character of Service Determination) occurs when a veteran’s discharge is less than fully honorable. The VA looks beyond the wording on your DD-214 to evaluate:
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The overall quality of your service, and
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Whether your separation falls under statutory or regulatory bars that would block benefits.
If no bars apply—or if exceptions excuse them—the VA may still consider your service “honorable for VA purposes,” making you eligible for compensation and other benefits.
The Review Process
When a veteran applies for benefits, the VA Regional Office reviews service records to determine eligibility. They look for bars to benefits under the law:
Statutory Bars (automatic disqualifiers under 38 U.S.C. § 5303):
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General court-martial sentence.
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Conscientious objector who refused to perform duty.
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Desertion.
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Absence during hostilities due to alienage.
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Mutiny or spying.
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Refusal to perform duty during a time of war.
Regulatory Bars (38 C.F.R. § 3.12):
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Willful and persistent misconduct.
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Offenses of moral turpitude (usually felonies).
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Accepting discharge to escape trial by court-martial.
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Until June 2024: “homosexual acts involving aggravating circumstances” (now eliminated).
If no statutory or regulatory bar applies, the VA should qualify you as a veteran for benefits purposes.
How to Request a Character of Discharge Review
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Submit an Application
File for VA benefits using VA Form 21-526EZ (Application for Disability Compensation) or related forms. When you apply, the VA will automatically initiate a COD review if your discharge requires one. -
Provide Supporting Evidence
Don’t rely on the VA to “figure it out.” Submit military service records, medical records, personal statements, and buddy/witness statements. This evidence is similar to what you’d use in a discharge upgrade application. -
Detail Compelling Circumstances
Provide context: PTSD, TBI, mental health struggles, combat hardships, sexual assault/harassment, family emergencies, or immaturity at the time of service. These factors can mitigate misconduct and tip the scale in your favor. -
Seek Legal Assistance
VA law is nuanced. Legal advocates (like NSLF) can help build the narrative, collect the right evidence, and push your case through more effectively.
What If You’re Denied?
A denial isn’t the end. Veterans can appeal just like in any other VA claim:
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To the Board of Veterans’ Appeals (BVA).
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To the Court of Appeals for Veterans Claims (CAVC) (where the standard is whether the VA’s finding was “clearly erroneous”).
Recent Changes in VA Rules (Effective June 25, 2024)
The VA expanded access under a new rule for certain former service members which:
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Removed discriminatory bars for homosexual acts.
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Added a broad “compelling circumstances” exception for willful/persistent misconduct, AWOL, and moral turpitude cases.
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Allowed those previously denied to reapply.
This means many veterans who were once barred may now have a pathway to benefits.
VA Character of Discharge Determination and Effect on Military Discharge Status
It’s important to note that the VA’s character of discharge determination does not change the Armed Forces’ characterization of service and has no effect on the former service member’s military discharge status. The determination is solely for VA benefits and services eligibility purposes.
VA Encouragement
The VA encourages former service members with other than honorable and bad conduct discharges to apply for VA care and benefits. The VA indicates that it “will carefully consider the circumstances of your discharge and determine if you are eligible.” This new rule is designed to offer hope and opportunities for those who served but faced difficulties during their service.
Compelling Circumstances Exception
The compelling circumstances exception can mitigate the bar to benefits for prolonged AWOL, crimes of moral turpitude, or willful and persistent misconduct. Factors considered include:
- Length and character of service, excluding the period of AWOL or misconduct
- Mental or cognitive impairments at the time of the offense
- Physical health issues
- Combat-related or overseas-related hardships
- Sexual abuse or assault
- Duress, coercion, or desperation
- Family obligations
- Age, education, cultural background, and judgmental maturity
Impact of the New Rule
The new rule, effective June 25, 2024, allows more former service members to qualify for VA benefits. This rule applies to all applications for benefits received by the VA on or after this date and to any claims pending before the VA, the United States Court of Appeals for Veterans Claims, or the United States Court of Appeals for the Federal Circuit.
Challenges in Character of Service Determination
These cases are often difficult due to the confusing and ambiguous nature of the law, with many grey areas and unanswered questions. Additionally, military records often do not address issues relevant to these determinations, requiring the VA and advocates to fill in significant gaps. The current VA process involves obtaining service personnel records, including the DD214 and DD Form 458. However, these documents rarely explicitly state whether the conduct falls under statutory or regulatory bars or provide detailed information about the circumstances of the discharge.
For example, the records rarely explicitly state whether the conduct falls under one of the statutory or regulatory bars. They also do not state whether there were compelling reasons for AWOL, nor do they provide detailed information about the conduct for which discharge was based. Additionally, they do not provide information about “honest, faithful, and meritorious” service when it comes to willful and persistent conduct exception.
Advocates’ Role in Supporting Veterans
Advocates play a crucial role in ensuring VA adjudicators have the best possible understanding of a veteran’s discharge and service. Here are ways to support a veteran’s claim:
- Obtain Comprehensive Records: Gather in-service mental health assessments, court-martial records, and other official documents.
- Collect Personal Statements: Secure correspondence between the veteran and their family or friends during service, and statements from others who observed their behavior and state of mind.
- Leverage Social Media: Use social media postings to provide context and evidence of the veteran’s state during their service.
- Provide Expert Testimony: Include favorable supplementary evidence from medical or psychological experts to explain the veteran’s condition and behavior during service.
Favorable supplementary evidence can be crucial in establishing a positive character of service determination, potentially making the difference between receiving or being denied benefits.
Discharge Upgrades as an Alternative to Character of Service Determinations
For veterans who face ineligibility for VA benefits due to their discharge status, seeking a discharge upgrade presents a viable alternative to pursuing a character of service determination. A discharge upgrade can effectively eliminate the barriers imposed by statutory and regulatory restrictions by changing the characterization of the discharge itself.
Impact of an Upgrade on Statutory and Regulatory Bars
Upgrading a discharge can transform the veteran’s status from less than honorable to honorable or general under honorable conditions, thereby removing the statutory and regulatory bars that would otherwise preclude access to VA benefits. An upgraded discharge generally indicates that the veteran’s service is considered “under conditions other than dishonorable,” making them eligible for VA benefits without the need for a separate character of service determination.
Overview of the Discharge Upgrade Process
The process for obtaining a discharge upgrade involves applying to either the Discharge Review Board (DRB) or the Board for Correction of Military Records (BCMR). The DRB handles cases involving discharges less than 15 years old, while the BCMR deals with older cases. Veterans must submit a comprehensive application, including evidence such as service records, personal statements, and documentation of any mitigating circumstances or changes since their discharge. These boards review the evidence to determine whether the discharge should be upgraded based on factors such as equity, propriety, and the veteran’s overall service record.
Read more about Discharge Upgrades in our Comprehensive Guide to Discharge Upgrades to Obtain VA Compensation Benefits.
Pursuing Both a Character of Service Determination and Discharge Upgrade
Veterans have the option to pursue both a character of service determination and a discharge upgrade at the same time. This dual approach can be strategic, as it provides multiple avenues for achieving benefits eligibility. While a discharge upgrade offers a permanent change to the discharge status, it may take longer to process. In contrast, a character of service determination can provide quicker access to benefits but does not alter the official discharge characterization. By pursuing both options, veterans maximize their chances of success in obtaining the benefits they deserve.
Why NSLF
At National Security Law Firm (NSLF), our mission is always to maximize your benefits in the shortest amount of time.
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We’ve been there. Founder Brett O’Brien, a U.S. Army and Army Reserves disabled veteran (2008–present), was diagnosed with a rare cancer tied to contaminated base water. He’s personally fought the VA and been denied before—just like countless veterans we now represent. Nearly all of our lawyers and paralegals are disabled vets themselves.
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We’re trusted. Veterans across the nation give us a 4.9-star rating on Google.
Our goal is simple: make the process as easy and effective for you as possible, whether you work with us, a VSO, or go it alone.
How Much Does It Cost?
With NSLF, you pay nothing upfront. We only get paid if we win, and our fee comes from your back pay only—never your future monthly checks.
Learn more: VA Disability Lawyer Pricing Explained.
Should I Hire a Lawyer?
Not everyone needs a lawyer—but if your discharge status is blocking your benefits, having expert help can be the difference between denial and financial security.
Example: Moving from 50% to 100% disability can raise compensation from $1,041/month to $3,737/month—a difference of $32,000 per year, tax-free, for life. Over 20 years, that’s $600,000+.
For many veterans, a good lawyer pays for themselves many times over. Learn more in our Guide to VA Representation Options.
Your Next Mission: VA Disability Education & Legal Strategy Center
This blog is one piece of the puzzle. To win your claim, you need the full playbook. That’s why we created the VA Disability Education & Legal Strategy Center—your complete hub of resources.
Inside, you’ll find:
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Guides to maximize benefits and ratings.
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Strategies to speed up claims and appeals.
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Tools and checklists to DIY your claim or strengthen it with an advocate.
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Expert insights from our team of disabled vets and former VA insiders.
👉 Enter the VA Disability Education & Legal Strategy Center now to take control of your VA claim.
Conclusion
If you received a less than honorable discharge, don’t assume your story ends there. Character of Discharge reviews and discharge upgrades open real pathways to the benefits you’ve earned. The rules have changed—and in your favor.
At NSLF, we’re here to guide you, fight beside you, and make the process less overwhelming. You served your country. Now it’s our turn to fight for you.
👉 Reach out today. We’ll listen, explain your options, and help you secure the financial security and recognition you deserve.
