One day, while Lorenz is walking to work, a woman (Lya De Putti) driving two white horses hits him in the road, knocking him to the ground.
His obsession with Veronika costs him his job when he fails to show up for work and threatens his boss for accusing him of stalking her.
However, Aunt Schwabe becomes suspicious and discovers that Lorenz will not be a published poet, and she angrily demands that he pay back the money after three days or else she will notify the police.
Desperate, Lorenz agrees to Wigottschinski's plan to break into her house after she has gone to sleep and to steal enough money to pay back the loan.
After his release, the film returns to the present, where Lorenz is finishing writing his life story down, in an attempt to purge his mind from the phantom woman who continually hits him in her carriage.