The Army requires that soldiers pay their debts promptly, failure to do so damages credit reputations and effects the Army's public image. The willful failure to resolve unpaid debts may result in administrative or punitive actions to include:
a. Making it a matter of permanent record by the placement of memorandum of reprimand, admonitions, or censure in the soldier's official personnel files.
b. Denial of reenlistment under AR 601-280.
c. Administrative separation from the service (AR 635-100 or AR 635-200).
d. Punishment under the UCMJ, when proper such misconduct may be charged under Article 92, 123, 133, or 134 of the UCMJ.
Counseling service is available under the Legal Assistance Program (AR 27-3). You are urged to seek budget counseling and consumer protection advice. These services may be obtained from on-post credit unions, Army Community Service Program Counselors (AR 608-1), or through financial management seminars or workshops. You may write your intentions about the debt in block 11 of the DA Form 4856-R. The impact of an adverse separation can be severe depending upon the type of discharge you receive. A dishonorable discharge deprives a soldier of all veteran's benefits and may deprive him or her of their civil rights. If separated for your duty performance, the least favorable character of discharge you could receive is an under other than honorable conditions discharge. Both may cause undue hardships in civilian life and may reflect on your eligibility for veteran's benefits, eligibility for reentry into the Armed Forces, and acceptability for employment in the civilian community.