As Walter and Maude and Arthur and Vivian vacation in Acapulco, Walter is worried about opening another store and getting his bank loan approved, so he is stunned when he learns the bank declined the loan right on the eve of Walter being named Businessman of the Year for the second year in a row. To make matters worse, Walter decides to file for bankruptcy and announces it at the award ceremony.

Walter lands in the hospital where he is revived after swallowing a bottle of sleeping pills. Maude and Arthur try to talk him into voluntarily admitting himself to mental facility which he at first objects to but finally agrees is the best thing but Walter soon uses the place as a way to get away from his financial problems and not face them.