  We determine the complete degeneration picture inside the variety of
nilpotent associative algebras of dimension 3 over an algebraically closed
field of characteristic not equal to 2. Comparing with the discussion in
[Ivanova N.M. and Pallikaros C.A., Degenerations of complex associative
algebras of dimension three via Lie and Jordan algebras, {\it Advances in Group
Theory and Applications}, in press], for some of the arguments in the present
article we needed to develop alternative techniques which are now valid over an
arbitrary algebraically closed field.
