<PAGE>


                                  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)
                               September 12, 2006

                               ASTA FUNDING, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

                                    Delaware
                       ----------------------------------
                 (State or other jurisdiction of incorporation)

       0-26906                                            22-3388607
------------------------                      ---------------------------------
(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

         Check the appropriate box below if the Form 8-K is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below): N/A

|_|      Written communications pursuant to Rule 425 under the Securities Act

|_|      Soliciting material pursuant to Rule 14a-12 under the Exchange Act

|_|      Pre-commencement communications pursuant to Rule 14d-2(b) under the
         Exchange Act

|_|      Pre-commencement communications pursuant to Rule 13e-4(c) under the
         Exchange Act




<PAGE>







ITEM 8.01 OTHER EVENTS

On September 11, 2006, Asta Funding, Inc. (NASDAQ:ASFI) announced that its
Chairman, Arthur Stern, GMS Family Investors LLC, an entity not controlled by
Gary Stern, but whose principal beneficiaries include Gary Stern, President and
Chief Executive Officer and his family, and Chief Financial Officer, Mitchell
Cohen intend to adopt prearranged stock trading plans in accordance with
guidelines specified by Rule 10b5-1under the Securities Exchange Act of 1934, as
amended. Arthur Stern and GMS Family Investors LLC will sell 200,000 shares and
300,000 shares, respectively. Mitchell Cohen will sell 10,000 shares. The press
release is attached as Exhibit 99.1 hereto.

Rule 10b5-1 allows programs to be established that permit corporate insiders to
prearrange purchases or sales of Company securities at a time when they are not
aware of any non-public information. These pre-planned trades will be executed
at a later date, over a period of time as set forth in the plans, without
further action or oversight by the executives and without regard to any
subsequent non-public information the individuals may receive. These plans allow
executives to continue their estate and tax planning and diversify their
investment portfolios. Sales of common stock by Arthur Stern, GMS Family
Investors LLC, and Mitchell Cohen pursuant to the terms of the plan, or
otherwise, will be disclosed publicly though filings with the Securities and
Exchange Commission.

On September 11, 2006 Asta Funding, Inc. announced that its Board of Directors
has approved the distribution of a special cash dividend of $0.40 per share to
shareholders. This dividend will be paid on November 1, 2006 to shareholders of
record on September 29, 2006. This payout will be in addition to Asta's regular
quarterly dividend payment of $0.04 per share. The press release is attached as
Exhibit 99.2 hereto.

On September 11, 2006 Asta Funding, Inc. announced it has made significant
portfolio purchases of approximately $1 billion in face value, for a purchase
price of approximately $29 million during its fourth fiscal quarter of 2006,
which ends September 30, 2006. For the fiscal year to date, the Company
purchased a total of approximately $4.7 billion in face value. The portfolio
acquisitions included telecom paper, credit card paper, and other portfolios.
The purchases were facilitated by operating cash flow and Asta Funding, Inc.'s
new line of credit of $175 million. The press release is attached as Exhibit
99.3 hereto.


ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS

(C) EXHIBITS.

EXHIBIT NO.                              DESCRIPTION
-----------                              -----------
  99.1        Press Release issued by Asta Funding, Inc. on September 11, 2006
  99.2        Press Release issued by Asta Funding, Inc. on September 11, 2006
  99.3        Press Release issued by Asta Funding, Inc. on September 11, 2006





                                      -2-

<PAGE>


                                    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 hereunto duly authorized.

                                    ASTA FUNDING, INC.


Date: September 12, 2006            By: /s/ Mitchell Cohen
                                        ---------------------------------------
                                    Mitchell Cohen
                                    Chief Financial Officer






                                      -3-
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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)
                               September 12, 2006

                               ASTA FUNDING, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

                                    Delaware
                       ----------------------------------
                 (State or other jurisdiction of incorporation)

       0-26906                                            22-3388607
------------------------                      ---------------------------------
(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

         Check the appropriate box below if the Form 8-K is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below): N/A

|_|      Written communications pursuant to Rule 425 under the Securities Act

|_|      Soliciting material pursuant to Rule 14a-12 under the Exchange Act

|_|      Pre-commencement communications pursuant to Rule 14d-2(b) under the
         Exchange Act

|_|      Pre-commencement communications pursuant to Rule 13e-4(c) under the
         Exchange Act
ITEM 8.01 OTHER EVENTS

On September 11, 2006, Asta Funding, Inc. (NASDAQ:ASFI) announced that its
Chairman, Arthur Stern, GMS Family Investors LLC, an entity not controlled by
Gary Stern, but whose principal beneficiaries include Gary Stern, President and
Chief Executive Officer and his family, and Chief Financial Officer, Mitchell
Cohen intend to adopt prearranged stock trading plans in accordance with
guidelines specified by Rule 10b5-1under the Securities Exchange Act of 1934, as
amended. Arthur Stern and GMS Family Investors LLC will sell 200,000 shares and
300,000 shares, respectively. Mitchell Cohen will sell 10,000 shares. The press
release is attached as Exhibit 99.1 hereto.

Rule 10b5-1 allows programs to be established that permit corporate insiders to
prearrange purchases or sales of Company securities at a time when they are not
aware of any non-public information. These pre-planned trades will be executed
at a later date, over a period of time as set forth in the plans, without
further action or oversight by the executives and without regard to any
subsequent non-public information the individuals may receive. These plans allow
executives to continue their estate and tax planning and diversify their
investment portfolios. Sales of common stock by Arthur Stern, GMS Family
Investors LLC, and Mitchell Cohen pursuant to the terms of the plan, or
otherwise, will be disclosed publicly though filings with the Securities and
Exchange Commission.

On September 11, 2006 Asta Funding, Inc. announced that its Board of Directors
has approved the distribution of a special cash dividend of $0.40 per share to
shareholders. This dividend will be paid on November 1, 2006 to shareholders of
record on September 29, 2006. This payout will be in addition to Asta's regular
quarterly dividend payment of $0.04 per share. The press release is attached as
Exhibit 99.2 hereto.

On September 11, 2006 Asta Funding, Inc. announced it has made significant
portfolio purchases of approximately $1 billion in face value, for a purchase
price of approximately $29 million during its fourth fiscal quarter of 2006,
which ends September 30, 2006. For the fiscal year to date, the Company
purchased a total of approximately $4.7 billion in face value. The portfolio
acquisitions included telecom paper, credit card paper, and other portfolios.
The purchases were facilitated by operating cash flow and Asta Funding, Inc.'s
new line of credit of $175 million. The press release is attached as Exhibit
99.3 hereto.

ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS

(C) EXHIBITS.

EXHIBIT NO.                              DESCRIPTION
-----------                              -----------
  99.1        Press Release issued by Asta Funding, Inc. on September 11, 2006
  99.2        Press Release issued by Asta Funding, Inc. on September 11, 2006
  99.3        Press Release issued by Asta Funding, Inc. on September 11, 2006

                                      -2-
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 hereunto duly authorized.

                                    ASTA FUNDING, INC.

Date: September 12, 2006            By: /s/ Mitchell Cohen
                                        ---------------------------------------
                                    Mitchell Cohen
                                    Chief Financial Officer

                                      -3-