Bill would give Nevada a fourth bankruptcy judge

Benjamin Grove

Friday, April 15, 2005 | 11:23 a.m.

WASHINGTON -- Nevada would get a fourth federal bankruptcy judge as part of a broader bankruptcy reform bill approved by the House of Representatives on Thursday.

The state's three bankrupcty judges have been overwhelmed by a burgeoning caseload and Nevada's lawmakers in Congress have been pushing for at least one new judgeship for several years, the lawmakers said.

The Senate last month approved the bankruptcy overhaul bill, which would make it harder for some who declare personal bankruptcy to simply wipe out their debts. It was sent to President Bush on Thursday, and he is expected to sign it.

"To ensure our judicial process works in a timely and effective manner, Nevada needs an additional bankruptcy judgeship, and I am pleased that this legislation grants Nevada's courts what they have needed for so long," Rep. Jim Gibbons, R-Nev., said.

Nevada lawmakers worked to preserve a Nevada provision that has been included in similar bankruptcy bills that failed in previous congressional sessions, lawmaker aides said. That provision would add a fourth judge to Nevada's bankruptcy court bench.

According to the bill language, Nevada would be allowed four bankruptcy judges for at least the next five years. After five years, if one of the judges leaves the bench, the fourth position would not be refilled -- unless Congress again deems that the fourth judge is needed.

Each of Nevada's bankruptcy judges handled an average 6,132 cases in the year ending September 2004 -- 24 percent higher than the national median 4,931, according to Gibbons' office.

The state was 34th overall for total bankruptcy case filings, but Nevada had about 7.7 filings per 1,000 people when the national median was 5.5 cases, Gibbons said.

"Our judges are just swamped in terms of caseloads," UNLV bankruptcy law professor Robert Lawless said. "There are only so many hours in the day that the individual workers in those courts can operate."

Nevada Chief Bankruptcy Judge Gregg Zive said the court may get even busier because of the new legislation, especially in the next six months as bankruptcy filers scramble to file before the legislation takes effect.

"We need this additional judge to be able to process all these matters more quickly, to move them in and out of the system and resolve disputes," Zive said.

The Nevada court has relied heavily on visiting judges who have traveled to Nevada to help out, from Western states including Arizona, California, Idaho, Montana -- even Alaska.

"Without them, we could not have functioned," Zive said.

In general, cases will be handled more quickly -- perhaps 20 to 25 percent faster -- with the additional judge, Zive said. Judges will have more time to participate in settlement conferences to avoid protracted cases, Zive said.

The new judge likely would be based in Las Vegas but work up to one-third of the time in Reno, Zive said.

Sen. John Ensign, R-Nev., and Senate Minority Leader, Harry Reid, D-Nev., typically work together to recommend nominees for federal posts to President Bush. Bush then nominates candidates to the Senate for confirmation.

Nevada lawmakers, not content with one new bankruptcy judge, plan to continue an effort to secure a fifth position.

"He's still pushing for the two full-time, permanent judges that Nevada needs," Reid spokeswoman Tessa Hafen said.