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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): January 5, 2009</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>ASTA FUNDING, INC.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

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    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
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    <TD width="32%">&nbsp;</TD>
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    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>0-26906</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>22-3388607</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
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    <TD width="49%">&nbsp;</TD>
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    <TD width="49%">&nbsp;</TD>
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    <TD style="border-bottom: 1px solid #000000"><B>210 Sylvan Avenue, Englewood Cliffs, New Jersey<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>07632</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
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<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>201-567-5648</B>


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    <TD nowrap>(Former name or former address if changed since last report.)</TD>
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<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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    <TD width="3%" nowrap align="left"><b>Item&nbsp;3.01</b></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.</B></DIV></TD>
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<P align="justify" style="font-size: 10pt">On January&nbsp;5, 2009, Asta Funding, Inc (the &#147;Company&#148;) received a staff determination letter from the Nasdaq Stock
Market stating that the Company was not in compliance with its rules for continued listing, Rule&nbsp;4310(c)(14), because
it has not timely filed its Annual Report on Form 10-K for the year ended September&nbsp;30, 2008. The Nasdaq letter
indicated that the Company has 60&nbsp;days, until March&nbsp;6, 2009 to submit a plan to regain compliance. If such a plan is
timely submitted by the Company, the Nasdaq Staff can grant the Company up to 180 calendar days from the due date of
the Form 10-K (or June&nbsp;29, 2009) to regain compliance.


<P align="justify" style="font-size: 10pt">As disclosed in the Company&#146;s Form&nbsp;12b-25, Notification of Late Filing, filed with the Securities and Exchange
Commission (the &#147;SEC&#148;) on December&nbsp;15, 2008 and again on Form 8-K filed on December&nbsp;31, 2008, as senior management has
been engaged in negotiating various bank amendments and related documents, the Company was unable to timely file its
annual report on Form 10-K for the year ended September&nbsp;30, 2008.


<P align="justify" style="font-size: 10pt">The Company currently expects to resolve the issues with its lenders and to file its Form 10-K within the next two
weeks and thereby regain compliance with Nasdaq&#146;s rules for continued listing. If, for any reason it is unable to file
the Form 10-K prior to March&nbsp;6, 2009, the Company would then submit a plan to regain compliance to the Nasdaq Listing
Qualifications Department no later than March&nbsp;6, 2009. No assurance can be given that Nasdaq will grant an exception
for the full 180-day period contemplated in the Nasdaq Marketplace Rules, if at all. Under Nasdaq&#146;s rules, the
Company&#146;s common stock will continue to be listed on Nasdaq until March&nbsp;6, 2009, and for any exception period that may
be granted to the Company by the Nasdaq Listing Qualifications Department. However, until the Company regains
compliance, quotation information for the Company&#146;s common stock will include an indicator of the Company&#146;s
non-compliance and the Company will be included in a list of non-compliant companies on the Nasdaq website.


<P align="justify" style="font-size: 10pt">Except for historical information contained herein, the matters set forth in this Form 8-K, including its ability to
resolve issues with its lenders and file its Form 10-K within the next two weeks, may be &#147;forward-looking&#148; statements
(as defined in the Private Securities Litigation Reform Act of 1995.) Although the Company believes the expectations
reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its
expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause
actual results to differ materially from the Company&#146;s expectations. Factors that could contribute to such differences
include those identified in the Company&#146;s Form 10-K and Form 10-K/A for the fiscal year ended September&nbsp;30, 2007, Form
10-Q for the quarter ended June&nbsp;30, 2008 and those described from time to time in the Company&#146;s other filings with the
Securities and Exchange Commission, news releases and other communications.

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<P align="center" style="font-size: 10pt; display: none">2
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<P align="justify" style="font-size: 10pt">On January&nbsp;7, 2009, the Company issued a press release announcing its receipt of the Nasdaq letter. A copy of the
Company&#146;s press release is attached hereto as Exhibit&nbsp;99.1 and is incorporated herein by reference.


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Financial Statements and Exhibits</B></DIV></TD>
</TR>

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<P align="justify" style="font-size: 10pt">(d)&nbsp;Exhibits


<P align="justify" style="font-size: 10pt">99.1 Press Release dated January&nbsp;7, 2009

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<P align="center" style="font-size: 10pt; display: none">3
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<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="justify" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.


<P align="justify" style="font-size: 10pt; margin-left: 44%; font-size: 10pt"><B>ASTA FUNDING, INC.</B>


<P align="justify" style="font-size: 10pt">Date:<U> January&nbsp;7, 2009</U>


<P align="justify" style="font-size: 10pt; margin-left: 44%; font-size: 10pt; margin-top: -11pt">By:<U> <B>/</B>s/ Mitchell Cohen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Mitchell Cohen
<BR>
Chief Financial Officer

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">4
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

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<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated January&nbsp;7, 2009</TD>
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Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 5, 2009
ASTA FUNDING, INC.
(Exact name of registrant as specified in its charter)
Delaware
0-26906
22-3388607
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
210 Sylvan Avenue, Englewood Cliffs, New Jersey
07632
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
201-567-5648
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On January 5, 2009, Asta Funding, Inc (the "Company") received a staff determination letter from the Nasdaq Stock
Market stating that the Company was not in compliance with its rules for continued listing, Rule 4310(c)(14), because
it has not timely filed its Annual Report on Form 10-K for the year ended September 30, 2008. The Nasdaq letter
indicated that the Company has 60 days, until March 6, 2009 to submit a plan to regain compliance. If such a plan is
timely submitted by the Company, the Nasdaq Staff can grant the Company up to 180 calendar days from the due date of
the Form 10-K (or June 29, 2009) to regain compliance.
As disclosed in the Company's Form 12b-25, Notification of Late Filing, filed with the Securities and Exchange
Commission (the "SEC") on December 15, 2008 and again on Form 8-K filed on December 31, 2008, as senior management has
been engaged in negotiating various bank amendments and related documents, the Company was unable to timely file its
annual report on Form 10-K for the year ended September 30, 2008.
The Company currently expects to resolve the issues with its lenders and to file its Form 10-K within the next two
weeks and thereby regain compliance with Nasdaq's rules for continued listing. If, for any reason it is unable to file
the Form 10-K prior to March 6, 2009, the Company would then submit a plan to regain compliance to the Nasdaq Listing
Qualifications Department no later than March 6, 2009. No assurance can be given that Nasdaq will grant an exception
for the full 180-day period contemplated in the Nasdaq Marketplace Rules, if at all. Under Nasdaq's rules, the
Company's common stock will continue to be listed on Nasdaq until March 6, 2009, and for any exception period that may
be granted to the Company by the Nasdaq Listing Qualifications Department. However, until the Company regains
compliance, quotation information for the Company's common stock will include an indicator of the Company's
non-compliance and the Company will be included in a list of non-compliant companies on the Nasdaq website.
Except for historical information contained herein, the matters set forth in this Form 8-K, including its ability to
resolve issues with its lenders and file its Form 10-K within the next two weeks, may be "forward-looking" statements
(as defined in the Private Securities Litigation Reform Act of 1995.) Although the Company believes the expectations
reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its
expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause
actual results to differ materially from the Company's expectations. Factors that could contribute to such differences
include those identified in the Company's Form 10-K and Form 10-K/A for the fiscal year ended September 30, 2007, Form
10-Q for the quarter ended June 30, 2008 and those described from time to time in the Company's other filings with the
Securities and Exchange Commission, news releases and other communications.
On January 7, 2009, the Company issued a press release announcing its receipt of the Nasdaq letter. A copy of the
Company's press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01
Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated January 7, 2009
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
ASTA FUNDING, INC.
Date:
January 7, 2009
By:
/
s/ Mitchell Cohen
Mitchell Cohen
Chief Financial Officer
EXHIBIT INDEX
Exhibit No.
Description
99.1
Press Release dated January 7, 2009