Yes plastic bread bags can be recycled.
As long as the bread bag is clean and dry it can be placed in your recycle bin to go off for recycling.
You can place bread bags, plastic shopping bags, furniture bags, Ziploc bags etc into the recycling bin and they can be recycled.
If whatever you put into your recycle bin or recycle container cannot be recycled then it will be sorted through at the recycling plant and be thrown away.
My area accepts plastic bread bags as well as shopping bags and I always place them in the recycling bin.
I used to use both bread bags and shopping bags for trash bags which worked well.
If your area doesn't accept the bread bags or shopping bags to be recycled then you can use them as trash bags.