Choice of Law in a Bankruptcy Case

When a person files for bankruptcy in Florida and owes a gambling debt in Nevada, which states' law apply in determining whether the claim on the gambling debt should be allowed or whether it is dischargeable or nondischargeable?  A 2006 Florida bankruptcy ruling dealt with this issue.

The Bankruptcy Court reviewed that normally a federal court hearing a matter pursuant to diversity jurisdiction must apply the law of the state in which it sits, but that such rule does not apply to a bankruptcy court as it is not sitting as a court of diversity. The Bankruptcy Court reviewed prior precedent that noted that the choice of which state's law applies should in part be based on which state's law more logically relates to the claim and the "significant relationship" test.