Mr. Pancks lodeges with an accountant Mr. Rugg and his family. Miss Rugg inherited her property by winning a breach of promise of marriage case with the local baker. The incident has caused the youth to torment the baker.

Mr. Pancsk dines with the Ruggs. His single status is not perceived as a threat. Before, he merely slept and dined there. However, his interests in the Dorrit family now requires him to consult Mr. Rugg.

Mr. Pancks gets acquainted with the Chiverys, particularly young John. He gets the young man tohelp him on mysterious missions. Mrs. Chivery protests are quieted by seeing her son’s spirits improve—and also because Mr. Pancks pays her for taking her helper in the store.

Mr. Pancks invites John to dinner. The Ruggs are sympathetic. They are aware of his situation. John only wishes to help Amy Dorrit.

Mr. Pancks divides up the work they have to do. Mr. Rugg soffers to go to a churchyard. Mr. Pancks doles out the other things between himself, Mr. Rugg, and John. He also gives them money for traveling and expenses.

Mr. Pancks shows interest in the lame foreigner John Baptist Cavelleto, who always acts like life is going well for him. People distrusted him for being a foreigner initially, prejudiced by their set views of foreigners. However, his cheerful disposition and not living up to the preconceived reputation of a foreigner helps him overcome the stigma in time. The residents of the Bleeding Heart Yard treat him like a child.

Mr. Pancks collects his rent from John Baptist. Mrs. Plornish says he is being employed in odd jobs and helps with the children. She also tells him John Baptist is always looking like he is looking out for someone he doesn’t want to see.