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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): February 12, 2009</B>

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<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)
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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>
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<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 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>
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<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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<P align="center" style="font-size: 10pt; display: none">1
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<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt"><B>Item&nbsp;8.01. Other Events</B>


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt; text-indent: 1%">Asta Funding, Inc. and its subsidiaries, including Palisades Acquisition XVI (the &#147;Company&#148;) reached
agreements with its lenders and amended certain terms of their banking arrangements. The effective dates for the
banking arrangements are February&nbsp;20, 2009. Upon the completion of the banking arrangements the Company expects to
file its Annual Report on Form 10-K for the fiscal year ended September&nbsp;30, 2008 on February&nbsp;20, 2009, with the
Report on Form 10-Q for the quarter ended December&nbsp;31, 2008 to follow shortly thereafter. Upon filing the Report on
Form 10-Q the Company will be up to date with its filing requirements with the Securities &#038; Exchange Commission
(SEC).


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt">The Company also announced that as part of a cost reduction program, it will be closing its call center facility
in Pennsylvania by the end of the second fiscal quarter of 2009. Asta has begun the process of moving all accounts
to its headquarters in New Jersey and could realize an annual savings of approximately $1.5&nbsp;million. The Company
will recognize a one-time charge of approximately $250,000 in the fiscal second quarter relating to this closure.
In addition, we anticipate, impairments of approximately
$21.4&nbsp;million in the first quarter of
fiscal year 2009.


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt; text-indent: 1%">The Company issued a press release regarding the events outlined above and is being furnished as Exhibit&nbsp;99.1
to this Current Report on Form 8-K.


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt">In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K,
including Exhibits 99.1 shall not be deemed &#147;filed&#148; for the purposes of Section&nbsp;18 of the Securities Exchange Act
of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by
specific reference in such a filing.


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt">Item&nbsp;9.01 Financial Statements and Exhibits.


<P align="justify" style="font-size: 10pt; text-indent: 3%">(c)&nbsp;Exhibits


<P align="justify" style="font-size: 10pt; text-indent: 2%">99.1 Press release dated February&nbsp;19, 2009.


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

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

<P align="center" style="font-size: 10pt; display: none">2
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<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt; text-indent: 1%">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: 1%; font-size: 10pt"><B>ASTA FUNDING, INC.</B>


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt">Date: February&nbsp;19, 2009


<P align="justify" style="font-size: 10pt; margin-left: 2%; font-size: 10pt">By:<U> <B>/</B>s/ Gary Stern&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Gary Stern<BR>
Chairman, President &#038; Chief Executive Officer<BR>

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<P align="center" style="font-size: 10pt; display: none">3
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
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    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
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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 February&nbsp;19, 2009.</TD>
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8-K
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): February 12, 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 8.01. Other Events
Asta Funding, Inc. and its subsidiaries, including Palisades Acquisition XVI (the "Company") reached
agreements with its lenders and amended certain terms of their banking arrangements. The effective dates for the
banking arrangements are February 20, 2009. Upon the completion of the banking arrangements the Company expects to
file its Annual Report on Form 10-K for the fiscal year ended September 30, 2008 on February 20, 2009, with the
Report on Form 10-Q for the quarter ended December 31, 2008 to follow shortly thereafter. Upon filing the Report on
Form 10-Q the Company will be up to date with its filing requirements with the Securities & Exchange Commission
(SEC).
The Company also announced that as part of a cost reduction program, it will be closing its call center facility
in Pennsylvania by the end of the second fiscal quarter of 2009. Asta has begun the process of moving all accounts
to its headquarters in New Jersey and could realize an annual savings of approximately $1.5 million. The Company
will recognize a one-time charge of approximately $250,000 in the fiscal second quarter relating to this closure.
In addition, we anticipate, impairments of approximately
$21.4 million in the first quarter of
fiscal year 2009.
The Company issued a press release regarding the events outlined above and is being furnished as Exhibit 99.1
to this Current Report on Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K,
including Exhibits 99.1 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act
of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by
specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
99.1 Press release dated February 19, 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: February 19, 2009
By:
/
s/ Gary Stern
Gary Stern
Chairman, President & Chief Executive Officer
EXHIBIT INDEX
Exhibit No.
Description
99.1
Press release dated February 19, 2009.