Not with people of his circumstances.
You are so wrong. The army will not discharge or release you if you owe them money. They will find some duty that you can do even if you are crippled or in the hospital and continue to pay you until you pay your debt. If you tell them to 'f' themselves and leave you are AWOL. They will come and get you,and after trial, put you in the stockade and when you get out they will give you some duty you can perform until you pay your debt. You will also owe them more money and will be fined for the time you spent telling them to 'f' themselves. Then they will decide what kind of discharge you get.
What doesn't add up is the story. I think its bogus. 1st Lt. William “Eddie” Rebrook IV is a West Point officer and has served at least 2 years to obtain his rank and makes good money. In Iraq he would be making tax free $80,000 plus a year and if not married little to spend it on. Wounded he would continue to receive his regular pay and discharged he would receive his disability pay. The article says that he was so destitute that he had to take up a collection from friends. I served during Vietnam and received disability and was recalled and had to reprove the disability. They did not recall me to serve in Vietnam but to train recruits in hand to hand combat. My son is a 1st Lt. serving in Iraq now so I speak from experience.