Payday loans, like other unsecured debts, are typically dischargeable in bankruptcy proceedings. In a Chapter 7 bankruptcy, most unsecured debts, including payday loans, can be discharged, relieving the borrower of the obligation to repay them. In a Chapter 13 bankruptcy, the borrower may repay a portion of the payday loan debt through a court-structured repayment plan, with the remaining balance discharged upon completion of the plan. However, it's essential to consult with a bankruptcy attorney to understand the specific implications of bankruptcy on payday loans and other debts.