Marcy's outing with Ophelia leaves her a little tied up and Charlie's response to a curious message reveals the true feelings between the two exes. Meanwhile, Matt is unhappy to discover that Labia has moved on from him, and Carol thinks it is time to take her relationship with Castor to the next level, but isn't aware of his true intentions. Karen gives in to Ashby's asking and agrees to date him. Hank gets arrested for driving under the influence and assaulting an officer. Karen, after hearing what happened, tells Hank that Becca has now changed her mind about writing and is thinking of going to law school. All three end up back at Sean and Beverly's house and while arguing about the whole situation they receive an unexpected call from Merc to say that the pilot was a hit with the test audience and that they have a hit show to write.
Looking for new representation, he meets with Hollywood power agent Larry Levine, who quickly sets a meeting with world-class filmmaker and Hank Moody idol Lars Manderhoff. Charlie wants to spice up the sex life with his wife, but she is not as fond of spanking as Dani is. Bates tells Hank that he and Becca talk regularly about writing; this somewhat troubles Hank as Becca has never talked to him about writing. Charlie runs into out-and-proud movie star Robbie Mac and finds himself taking drastic action in order to land the award winner as a client. Meanwhile, Carol rejects Beverly's idea to sue Helen for blacklisting her and hits rock bottom after accidentally seeing the latter, but later finds solace in Merc. Hank's forced to hide the hung-over party girls all over the house after Jill and Felicia pay surprise visits. Merc's father dies leaving Sean, Beverly, and Matt struggling to decide what condolence gift they should buy to stay in Merc' good books.
Atticus invites all three on his tour, even offering to Charlie and Marcy on officiating their marriage. Hank and Karen say goodbye to Becca as she heads off to her literary pilgrimage. Charlie and Marcy cohabitate although they intend to divorce. Unexpectedly Levon shows up at Charlie Runkel's house, where Hank is crashing. Meanwhile, Beverly helps a nervous Carol prepare for her lawsuit against Helen.
Meanwhile, Carol finally decides to heed Beverly's advice to sue Helen, plans to keep the baby despite breaking things off with Merc again and to move back to her home state of Michigan. Hank looks forward to going back there with her, but when Damien and Becca reconcile, Hank decides it would be wrong to remove Becca from Los Angeles, so he and Becca will stay in L. Matt is on the way to hospital with a dislocated arm due to Merc's attack, Sean and Beverly are bruised, but finally reconcile. On the home front, Becca has some big news. There are signs Marcy is pregnant. Meanwhile, Atticus Fetch starts his tour on bus not having enough money to pay for his airplane expenses. Beverly and Sean are pressured by the network to shift the show's focus more towards the students, which leads to Matt having a temper tantrum.
Meanwhile, Matt gets a with his sons in the car, and Sean and Beverly are back together but Beverly is worried to tell him that she slept with Rob that Wednesday. Hank meets Becca during her work break and she announces that Tyler has proposed to her. Meanwhile, Karen does her best to help him overcome the pain. Bill and Karen are at the same event and Karen makes a scene. Bill decides to let his daughter publish the novel she stole from Hank. Merc thinks the pilot is terrible and states that it will not result in a full season. Charlie and Daisy have a bonding moment over the film Dirty Dancing, while Marcy is still in rehab.
An intervention from Karen, Becca, Charlie, and Marcy due to concern of his behavior, increased drinking, and past experiences leads Hank to decide to enroll in a rehabilitation center. Becca decides to move out of Bill and Karen's home to live with her dad Hank. Marcy develops the suggestion of a threesome with Charlie as well as Dani, however it finishes all of a sudden. Meanwhile, Karen, Becca, and Marcy have a girls' night out. Emotional and distraught from recent losses, Charlie seeks comfort from Marcy while dealing with Lizzie getting her big-break role in Santa Monica Cop thanks to Stu. Season 7, Episode 1 April 13, 2014 Season 7, Episode 1 April 13, 2014 Season 7 begins with Hank eager to reunite with Karen, the love of his life, but things don't go quite as planned.
Meanwhile, wants Matt to audition for the role in Andrew's pilot, especially when they hear a rumor that he is going into rehab that Matt thinks was started by his father. Marcy goes into rehab for her cocaine addiction and Charlie starts an affair with Daisy. Hank, while ordering a drink, sees Richard Bates who is working as a bartender for research for his latest book. Karen continues her job as the interior designer of Atticus Fetch's house. Carol tells an incredulous Merc about Jamie's affair and he flies into a rage. Convinced that his best chance for success lies with Sean and Beverly, he attempts to woo the reluctant couple away from Tim. Charlie and Stu try to win back Marcy.
Mia wants more of Hank's writing to pass her class, instead he offers her to help her with her own writing. This doesn't thrill Hank at first, but later the other guests walk in on him and Sonja in the bedroom. Hank has an encounter that puts him in a very awkward position with Karen. Charlie and Marcy consider Stu's offer - until Atticus' old rock 'n' roll butler Krull offers an alternative solution to their money woes. Hank and Trixie hang out again for a little massage. Sean has lunch with Merc in an attempt to salvage the Pucks! Atticus is surprised by Faith, while his wife surprises Hank. Everyone gather for dinner at Stu's, where Marcy reveals that her baby is Charlie's.
As they succumb to the drugs she remarks on how their bodies will be discovered together, and pleads with Hank to tell her he loves her. Hank proposes to Karen on the night that they discover that Hank could be the father of Sonja's child. Hank is wallowing deep in self-loathing following the release of A Crazy Little Thing Called Love, which he perceives as a sub-par yet popular movie adaptation to his most recent novel, God Hates Us All. Hank's coworkers, Hugh and Terry, are bothered when Hank is to write his first episode of 'Santa Monica Cop'. Karen accepts a job offer back home in New York, forcing Hank and Becca to make painful choices.
Bill bails him out and Hank finds a new connection to Meredith. But Sue Collini thinks up a creative way to restore Charlie's confidence. Charlie is reduced to working at a car dealership. Season 7, Episode 4 May 4, 2014 Season 7, Episode 4 May 4, 2014 Hank and Levon help Julia celebrate her new role. Stu, Marcy and Bates' talk of sexual proclivities leaves the Moodys searching for the nearest exit, but the party gets even more out of control when Carrie has a realization about Hank. Hank runs right into Dani as well as Charlie while they are in his workplace. Meanwhile, when she's fired after an inappropriate encounter with Stu, nanny Lizzie calls on Charlie and allows their relationship to progress, only to have Marcy beg for her return.