Service members who separate with a Bad Conduct Discharge or an Other Than Honorable discharge enter civilian life with a characterization that has direct, concrete consequences for the benefits they can access. The Department of Veterans Affairs does not automatically deny benefits based on discharge characterization, but it does conduct a character of discharge review for veterans who separate under less than honorable conditions, and the outcome of that review determines eligibility for healthcare, education benefits, disability compensation, and other programs.
The practical difference between a BCD and an OTH matters not only for VA purposes but for civilian employment, federal licensing, and other post-service contexts. Understanding exactly what each characterization means, what benefits are affected, and what avenues exist for seeking an upgrade or a favorable VA determination is essential for any service member who is facing a disciplinary process that could result in either outcome.
How VA Eligibility Is Determined After a Less-Than-Honorable Discharge
Veterans who separate with a Bad Conduct Discharge or an Other Than Honorable characterization do not have automatic access to VA programs. Instead, the VA conducts a character of discharge determination, an administrative review process in which the VA evaluates whether the nature of the veteran’s discharge bars them from receiving benefits under the applicable law. This process is separate from the military’s own discharge procedures and applies a different legal standard.
Whether a veteran with a BCD or OTH ultimately qualifies for VA benefits depends on the specific reason for separation, the nature of their service, and whether any statutory bar to eligibility applies. A veteran who served honorably for most of their career before a single incident that produced a less-than-honorable discharge may receive a favorable determination for at least some benefit categories. Veterans who have been denied benefits on discharge characterization grounds should understand that the denial is a starting point for appeal rather than a final determination.
The Character of Discharge Review Process at the VA
The VA’s character of discharge determination follows a defined procedural path. A veteran denied benefits on discharge characterization grounds receives a written decision explaining the basis for the denial. That decision can be appealed to the Board of Veterans’ Appeals, which conducts a de novo review of the character of discharge question and is not bound by the original determination. Veterans who gather additional service records, unit records, or witness statements not presented at initial review often produce stronger records on appeal.
Timeframes for character of discharge determinations and subsequent appeals can extend to years rather than months. Veterans who need healthcare access in particular should know that some VA medical programs operate under different eligibility rules than compensation programs, and the character of discharge bar does not apply uniformly across every VA program. Counsel familiar with VA eligibility law can identify which specific benefits remain accessible while an appeal is pending and which are foreclosed until a favorable determination is obtained.
Specific Benefits That Are Cut Off by BCD vs. OTH
A Bad Conduct Discharge resulting from a special or general court-martial conviction bars access to most VA benefits unless the VA’s character of discharge determination produces a favorable finding. A BCD is a punitive discharge, meaning it results from a criminal proceeding, and that origin affects how the VA and other federal agencies evaluate it.
An Other Than Honorable discharge resulting from an administrative separation is an administrative characterization rather than a punitive one. The VA evaluates OTH discharges through the character of discharge process, and some OTH veterans qualify for VA healthcare on a case-by-case basis depending on the specific reason for separation. The distinction matters practically because the OTH pathway to VA benefits, while not automatic, is open in more circumstances than the BCD pathway.
Applying for a Discharge Upgrade to Restore VA Benefits
Veterans seeking to restore VA benefit eligibility through a discharge upgrade must apply to either the Discharge Review Board or the Board for Correction of Military Records, depending on the specific discharge and the timing of the application. A successful upgrade to Honorable or General Under Honorable Conditions typically resolves the benefit eligibility issue, though the specific benefits restored depend on what the upgraded characterization qualifies the veteran for under the applicable statutes.
Petitions for discharge upgrade must be supported by evidence that the original characterization was improper or inequitable, and the standard is demanding. Veterans who apply without assistance frequently submit petitions that do not present the evidence in the form that is most persuasive to these boards. An experienced discharge upgrade practitioner who understands both the legal standards and the practical patterns of how boards evaluate petitions is a significant asset for veterans pursuing this remedy.
The Difference in Long-Term Civilian Consequences Between BCD and OTH
Beyond VA benefits, the practical civilian consequences of a BCD and an OTH differ in ways that matter for veterans building post-service lives. An OTH discharge does not result from a criminal proceeding, and in many civilian contexts it is treated more favorably than a BCD. Federal employment law, civilian licensing requirements, and background check outcomes all treat the two characterizations differently, with the BCD’s criminal origin typically creating more significant barriers.
Veterans navigating post-service employment, licensing, or other opportunities where discharge characterization is relevant should understand which specific consequences apply to their specific characterization and what if any remedies are available. The advice most relevant to their situation depends on the specific characterization, the specific civilian opportunity at issue, and whether a discharge upgrade petition is worth pursuing given the evidence and circumstances of their case.
This content is provided for educational purposes only and does not constitute legal advice. Military law is complex and fact-specific. If you are facing a UCMJ investigation, court-martial, administrative separation, or any other military legal matter, consult a qualified military defense attorney before taking any action.