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There are probably some plot holes but I think the biggest issues are:
(1) How did Lawrence get into this mess?
(2) How will he get out?
(1) People may have different opinions about what he should have done, but I think the general consensus is that Lawrence got too greedy by getting armor on margin. Not only did he put himself in a dangerous position by going deeply into debt, he picked a commodity that is a bit more sensitive to market conditions (at least compared to things like wheat, furs, and pepper). If he gets less armor he takes a huge loss but lives on to fight another day.
(2) I think both Horo and Nora will play a role. Horo has "earned her keep" from the start and her value has well exceeded the 140 silver pieces Lawrence claims she owes - if it weren't for her there's a good chance that Lawrence would be broke, jailed, or dead. She will find a way to dump the armor, or in the worst case scenario, help him escape his creditors. As for Nora, she is obviously an important character in this storyline and she will most likely play a major role in what happens.
No matter how things turn out, it was an important (and expensive) lesson for Lawrence. He's been way too reckless on a number of occasions and such a lifestyle almost inevitably leads to ruin. You can't push all-in every single time if you wish to succeed over the long run.
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