Controversial property developer Salim Mehajer has launched a Federal Court bid to overturn his bankruptcy while he awaits a court ruling on whether he will be jailed for electoral fraud.

The former deputy mayor of the now-defunct Auburn Council is expected to ask Justice Michael Lee to annul the bankruptcy declaration at an urgent hearing on Thursday.

Salim Mehajer arrives at Sydney's Central Local Court on April 11. Credit:AAP

Mehajer, 31, was declared bankrupt by the Federal Circuit Court on March 20 while he was in prison awaiting trial on charges of perverting the course of justice and conspiring to cheat or defraud for allegedly staging a car crash that prevented him from attending an assault trial last year.

After two months behind bars, Mehajer mounted a successful bid for bail and was freed from Silverwater jail on April 4. He is expected to stand trial on those charges next year.