Fiona hopes her moral compass isn't leading her astray when she reconnects with her married high school crush, but when she finds an abandoned purse with over five hundred dollars inside, she assumes her luck is finally changing; Frank is willing to do just about anything to stay in Dottie's good graces, even marry her; after Harry's passing, Debbie becomes obsessed with death; Kevin thinks about buying the Alibi; Lip meets with a colonel to glean information for Ian about West Point; Jody asks Frank for Karen's hand in marriage.
Monica's return wreaks havoc on the Gallagher clan, leaving the children determined to find out if Frank is their real father; disgusted with Monica, Fiona moves in with Steve next door; Karen accepts Eddie's invitation to a Purity ball; Frank hits a new low when he uses Carl to stop a disability worker from tampering with his free money from the state.
Frank takes a big risk when two goons demand the six grand he owes them; Fiona agrees to a night away with Steve, leaving Liam in agoraphobic Sheila's care; Ian is fed up with Mickey's bullying of Kash and goes to do something about it, leading to a violent scene.
When Frank gives up drinking, Sheila worries he'll no longer be attracted to her, while Carl and Debbie enjoy having their dad back - despite Lip's warning that it won't last; Fiona barely has time to notice Steve's suspicious behavior as she scrambles to earn money and find a better job; when Lip meets with a college professor, Karen begins to question their relationship.
In the Season 2 finale, lonely Frank schemes to break Monica out of the psychiatric facility; Jimmy earns his way back into Fiona's good graces and asks her to meet his family; Ian runs into Ned again; Eddie's insurance check arrives.
Frank has some settlement money coming his way but needs his ex-wife's signature on the documents; Debbie learns that Steve may not be who he says he is; Fiona is enraged when Monica shows up and announces she's taking baby Liam with her.
Fiona deals with the consequences of sleeping with Craig when his angry wife shows up at the door; Debbie develops a stress-rash and Fiona wonders if she's putting too much responsibility on the kids; Sheila has made it all the way to the hair salon and Frank realizes his days in the Jackson household are numbered; no longer having sex with Karen, Lip tries to dig up dirt on Jody; Ian continues on the path to West Point; Carl house-sits with his friend, Little Hank; Ethel meets Malik, a boy on Kevin's youth basketball team.
Fiona tries to prove the Gallagher home is suitable for rehabilitating a delinquent after receiving a letter from Carl's teacher; Lip gets busted taking the SAT for fellow students in exchange for cash; Kash and Ian are ashamed at their failure to stop a string of robberies at the Kash and Grab; Frank's poor business acumen continues to have negative consequences.
As Sheila conquers her agoraphobia, a worried Frank finds a new financial plan in fellow bar patron Dottie, whose declining health and city pension make her an ideal match; Fiona juggles her job, the kids and her burgeoning love life, and Jasmine tries to help by setting up Fiona with a sugar daddy; Veronica takes some old folks from the home on an excursion; Lip worries about Karen's growing relationship with Jody; Ian tries to land a recently released Mickey a job at the Kash and Grab; Debbie wants her own room; Carl moves into the van.
Steve tries to convince Fiona to skip town with him now that his true livelihood as been discovered; Frank and Karen's secret is revealed, forcing Frank to go into hiding; Fiona tries to figure out how to get Lip and Ian out of jail after their arrest for car theft.
Lip tries to get back in Karen's good graces by crafting a prenuptial agreement for her and Jody, while Ian continues to give Lip the silent treatment; Frank wants to kick Grammy out but Fiona resists until the basement meth lab explodes; Fiona is invited on a boat trip but doesn't realize Steve and his girlfriend are also attending.
The family schemes a fake wedding when it is revealed that Kevin's new fiancee comes with a substantial dowry; Frank deals with some bad medical news by spiraling out of control; Steve looks for a new car, with Fiona along for the ride.
Monica returns to party and plot scams with Frank, but the rest of the family suspects she hasn't returned to stay; Fiona reconsiders her decision to kick Lip out of the house; Grammy's death affects everyone differently, and leaves Frank determined to make sure he gets every last penny his mother left behind; Sheila and Jody think Eddie's ghost is haunting the house.
Grammy Gallagher shows up on a medical furlough and tries to track down a former meth lab protege that owes her money; Sheila plans Karen's wedding reception; Fiona double dates with Steve and his Brazilian girlfriend, and discovers that Steve is married; Ethel reacts to Clyde's death; Frank discovers the identity of Eddie's insurance beneficiary.
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