Mr. Weevle and Mr. Guppy meet at the local tavern, where a crowd has formed. They admit that they have been conspiring together but do not mention the letters they were to retrieve from Mr. Krook. Mr. Snagsby is present, too; he is startled to see Mrs. Snagsby glaring at him. The Smallweed family arrives and surprises everyone by announcing that Mr. Krook was Mrs. Snagsby’s only brother, and they have come to take possession of the property. Mr. Tulkinghorn, the Snagsbys’ lawyer, will take charge of the arrangements.

Mr. Guppy now has the unpleasant task of telling Lady Dedlock that he does not have the letters. When he arrives at her townhouse, she is on her way out to dinner but still receives him. She seems relieved when she learns that the letters have most likely been destroyed with Mr. Krook. She informs Mr. Guppy that this is the last time they will meet. She dismisses him as Mr. Tulkinghorn arrives, who had assumed that Lady Dedlock would be out. Lady Dedlock excuses herself and leaves.

Mr. George receives a letter from Mr. Smallwood stating that he must pay the sum of what he owes. Mr. George is overwhelmed; Mat Bagnet had cosigned on the loan with him, but neither of them have the money. Mr. George fears that he will be the cause of the Bagnets’ poverty. He and Mat go to visit Mr. Smallweed, hoping he will be lenient, but he is not. Mr. George and Mat hope that Mr. Tulkinghorn can be persuaded, but the lawyer berates them for taking out a loan they evidently do not intend to pay. He tells Mr. George that, if he should give him the handwriting sample he had wanted previously, the matter will be forgotten. Mr. George gives him the sample, stating that it is only a letter of instruction. While Mr. George and Mat were waiting to see Tulkinghorn, Mrs. Rouncewell leaves the office. Mr. George recognizes her and keeps his back to her. Mrs. Rouncewell can tell that the two men were formerly in the military; she tells Mat that her son had been a soldier and had always been a good man, though some people tried to turn her against him. Mr. George returns to the Bagnets’ home and urges Woolich, the Bagnet son, never to do anything to bring a gray hair to his mother’s head.

Esther recovers from her illness, but her face is left horribly scarred. She refuses to see Ada until she has had some time to adjust to her new appearance. Mr. Jarndyce tells her that Richard has become more suspicious of him, claiming that his guardian has a conflict of interest in the Jarndyce and Jarndyce case. Miss Flite comes to visit and tells Esther that a veiled woman came to inquire after her and took away a handkerchief that Esther had placed on the destitute woman’s dying baby. She also tells Esther that Mr. Woodcourt had been shipwrecked but rescued several people, making him a hero. Esther believes that Mr. Woodcourt used to be in love with her. She is glad that he is distant, so he will not have to look on her altered appearance.