The Celebrity Big Brother runner-up owed £140,000 in unpaid tax but is said to have cleared the entire balance.
In a two-mintue hearing at London's High Court, a judge was told that Dappy - real name Costadinos Contostavlos - had coughed up £140,679.83.
As a result, the bankruptcy petition was dismissed. Dappy, who is believed to have been paid £100,000 from CBB, was not in court to attend the hearing.
During his stint on CBB last month, Dappy's reps were said to have paid £6,000 to the tax man on his behalf to stop bailiffs from turning up at the famous house.
A spokesman for the N-Dubz star had no comment to make at the time.
Dappy will now have to pay £780 in court costs, states The Mirror.
The star's situation is of stark contrast to that of his fellow CBB housemate and rumoured girlfriend Luisa Zissman, who has just bought herself a white Ferrari.
She has also just splashed out on a mega holiday with "someone special".
Earlier today, Luisa tweeted: "Yayyyyyyyy you can say anything to me today, you won't kill my mood because Miami & St Barths is BOOKED in April with some1 special."