Upon hearing that he has lost the lawsuit, Mr. Tulliver at first bears the news very well. He even convinces himself that the loss has not affected him. He knew he would not let anyone think he was crushed by the blow, but it surprises him that he is not pretending this is so. Rather than feeling bitter or angry, Mr. Tulliver spends all his energy making plans to ward off any calamity. In fact, his mind is so full of thoughts of what he will do next that it is unsurprising that his face feels flushed when he mounts his horse to ride home.

However, on his way home, the resultant facts all come rushing in on him, and he realizes how dire his situation is. Not only has he lost the suit, which will cost him more money than he possesses, but without the mill he has no way to earn the money to pay off previous loans that are about to come due.

Once home, Mr. Tulliver admits no difficulties to his wife. He even scolds her for crying and worrying after hearing that he has lost the suit. He goes to bed only after telling her that he is making an account of all their possessions so as to list them in his will. The next day, he leaves without explaining why. As Tulliver heads to his lawyer’s office, one of his lawyer’s clerks meets him and hands him a letter. The lawyer, Mr. Gore, has been called away from his office and cannot meet with Tulliver until the next day, but he sent this letter with important information.

As is his manner, Tulliver places the letter in his pocket, determined to wait until he has returned home to read it. However, on second thought, he decides it might be better to find out what information is contained in the letter before he confronts his wife. As he reads, Mr. Tulliver learns that a mortgage he had taken on his home and mill has been transferred to none other than Mr. Wakem. This news startles Tulliver so much that he falls off his horse. A half hour later, one of Mr. Tulliver’s workers finds him lying in the middle of the road.

When Maggie arrives home, she is shocked to see her father. He babbles at her, repeating phrases that make little sense. The doctor tells Maggie that her father has received a shock that has affected his memory, but he assures her that Mr. Tulliver will regain his senses in time. The aunts and uncles are summoned shortly after Maggie’s arrival but provide little relief. The aunts moan that their sister and her two children have been ruined all because of Mr. Tulliver’s poor management, which they see as a curse on the family.

Later, as Maggie and Tom are riding toward their home from Tom’s school, Maggie tells her brother that she learned that Mr. Wakem has taken possession of a mortgage on their property. Tom promises Maggie that he will “make him feel for it” when he becomes a man. Tom also makes Maggie swear she will never again speak to Philip.