Typically, a payday loan can be dischared in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, the payday lender will be paid the same as other unsecured creditors, which usually means they'll only be paid a portion of the debt.
That having been said, if you took out the loan within 90 days of filing, the creditor can claim that you had no intent on paying the full amount of the loan back (i.e. you had "fraudulent intent"). In such a case, the bankruptcy court may find you liable for full repayment.
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