Headstone watches outside Wrayburn’s lodgings. He suspects that Lizzie may be in Wrayburn’s chambers. The watchman lets him in and he listens at the door, hearing voices but not a woman’s.

Leaving, Headstone runs into Riderhood, who is there on business and explains that he is seeking damages from the steamer that ran him down as well as requesting a job as a Lock-keeper. Headstone asks Riderhood when he last saw Lizzie. Riderhood responds that it was the day Gaffer’s body was pulled from the river, which is also the only time he saw her with Wrayburn. Headstone gives Riderhood money and asks him to tell him if he should ever see Lizzie.

At breakfast, Mrs. Lammle remarks that the only income they have is from her annuity. Mr. Lammle reminds his wife that they are in league together by agreement. He also has used their furnishing as collateral for a loan from Riah, although Fledgeby warned him against it.

Mrs. Lammle points to Mr. Boffin as their next best hope, although Rokesmith stands in their way. If he could be gotten rid of, they might be able to arrange for Mr. Lammle to take his place as secretary. She devises a plan to tell Mr. Boffin about Rokesmith’s proposal to Bella, thus forming a breach between the two men.

Fledgeby arrives and Mr. Lammle begs him to convince Riah to give them more time to pay off their debt. Fledgeby agrees to try, but in fact he tells Riah to foreclose on the Lammles immediately.

While Fledgeby waits in the offices of Pubsey & Co., Jenny Wren and Twemlow both come to see Riah. Fledgeby pretends to have no connection to the business, but Jenny knows better. Fledgeby proclaims his disgust that Riah is foreclosing on the Lammles and offers to support Twemlow in his own dealings with Riah.

When Mr. Riah finally arrives, he tells Fledgeby that he has put up the Lammles’ property for auction. He also says he is calling Twemlow’s loan. Jenny tells Riah that he is a "Wolf in the Forest."

Mr. Venus, who still has old Mr. Harmon’s will, regularly attends Wegg’s readings to Mr. Boffin. He gives Mr. Boffin his card with a note requesting a meeting with him.

Mr. Boffin comes to Mr. Venus’s shop the next evening. Mr. Venus tells him of his agreement with Wegg, which he now regrets, and of the discovery of the will. Mr. Boffin offers Mr. Venus money to throw the will in the fire, but Mr. Venus refuses.

Wegg arrives at the shop, and Mr. Boffin hides so that he can eavesdrop. Venus draws Wegg out into a confession. Afterwards, Mr. Venus tells Mr. Boffin that he plans to hand the will back to Wegg and renounce his involvement with him, but he will warn Mr. Boffin before he does so that Wegg can be caught. As he leaves, Mrs. Lammle stops Mr. Boffin and asks to speak to him.