With Micawber owing money, he retrieves little Alice, age five, from the workhouse to live with him and his family. Micawber takes in a lodger, Mr. Gideon Babbitt. Micawber tells of taking a position as a lawyer for the Sturgeon family, as well as learning the truth about his dismissal from the family.

Mr. Micawber learns that his lodger Mr Babbitt is part of the theatre and accepts a position as well. Mr. Cheney sends Mr. Kane to collect the debt of £10 7s 8d, now with interest it is £11 3s & tuppence. Mrs. Micawber retrieve a gift that her late father had bequest upon Mr. Micawber.

The children try to persuade Micawber to allow them to go to the circus in the park. The boot mender, the coalman and the grocer attempt to track down Micawber and retrieve the debt that he owes. Ruth seeks to adopt little Alice, age 5. Micawber gets arrested. Two Americans arrive, looking to see women taking their clothes off and gambling, and ending up thinking that they will get to kill an English bear.

Micawber starts a new position in the house of Buckley Hall. With warnings of typhoid, there is a concern for little Alice, age 5, but he finds that she actually has varicella. Micawber is rung for by Lady Charlotte.