By Karen Mizoguchi
June 15, 2018 at 04:23 PM EDT
Paul Zimmerman/Getty Images

Joe and Teresa Giudice are no longer in the red.

The Real Housewives of New Jersey stars’ bankruptcy case has been dismissed as they inch closer to settling up with creditors, according to TMZ. In October 2014, Joe and Teresa, both 46, were sentenced to 15 months and 41 months in prison, respectively, for mail, wire, and bankruptcy fraud.

PEOPLE confirms there are only two entities left to which the Giudices owe money: the IRS and N.J. Dept. of Treasury. They have been on payment arrangements for the last two years and remain current on both.

Joe and Teresa were initially indicted in 2013, when they were accused of hiding their fortune in a bankruptcy filing. He was also accused of failing to file tax returns between 2004 and 2008. They initially pleaded not guilty, but later changed their minds and entered a plea of guilty.

Joe, who transferred from the Federal Correctional Institution in Fort Dix, N.J., to a federal prison in Pennsylvania last November, has completed 27 months of his sentence thus far.

After spending just under a year in prison, Teresa was released from Federal Correctional Institution in Danbury, Conn., in December 2015.

The good news for Joe and Teresa comes nearly a month after a source told PEOPLE that the pair can’t wait to “be a family again” and “be reunited” with their four daughters Gia, 17, Gabriella, 14, Milania, 12, and Audriana, 9.

Joe has lost 45 lbs. in prison and Teresa — who recently competed in the bikini division of a bodybuilding competition — is spending plenty of time with her daughters as she takes care of the household.

“Joe is working out,” the source said. “Teresa is, too. They both look better than ever.”

In May, the couple celebrated their 46th birthdays apart.

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