Content Warning: This section of the guide includes discussion of suicide.

Merdle becomes increasingly famous as his fortunes grow, despite no one knowing the specifics of his finances. He holds a dinner with the Barnacle family after his wife writes to him about the possibility of Sparkler marrying. At the dinner, they speak about William Dorrit and how he has become wealthy after being released from prison, and Mr. Merdle notes that his wife and stepson are acquainted with the family. Merdle meets with the Barnacle patriarch, Lord Decimus, and a few days later, it is announced that Edmund Sparkler will become one of the Lords of the Circumlocution Office.

The Merdles continue to grow in popularity and are a frequent topic of discussion among the people of Bleeding Heart Yard, where everyone wishes to be Mr. Merdle. The Plornishes have opened a shop and Pancks comes there to visit their lodger, his friend John Baptist. Once, Pancks, Old Nandy, and Mrs. Plornish see John Baptist in the street, acting strangely, and he later tells them he has seen a bad man—referring to Rigaud. They see that John Baptist does not want to say more about it, but he fears that the man will come and find him.