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)
December 24, 2007

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

o Written communications pursuant to Rule 425 under the Securities Act

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

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

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

TABLE OF CONTENTS

EX-99.1: PRESS RELEASE

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On December 21, 2007, Asta Funding, Inc. (the “Company”) issued a press release regarding results for the fiscal years ended September 30, 2007 and 2006. A copy of this press release 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 and 99.2 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 December 21, 2007.

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: December 24, 2007	By: /s/ Mitchell Cohen
	Mitchell Cohen
	Chief Financial Officer

EX-99.1

Exhibit 99.1

CONTACT:	FOR IMMEDIATE RELEASE
	Stephen D. Axelrod, CFA
Mitchell Cohen, CFO	Alisa D. Steinberg (Media)
Asta Funding, Inc.	Wolfe Axelrod Weinberger Assoc. LLC
(201) 567-5648	(212) 370-4500; (212) 370-4505 (Fax)
	steve@wolfeaxelrod.com
	alisa@wolfeaxelrod.com

ASTA FUNDING ANNOUNCES FOURTH QUARTER

AND FISCAL YEAR FINANCIAL RESULTS

ENGLEWOOD CLIFFS, N.J., December 21, 2007 — Asta Funding, Inc., (Nasdaq: ASFI — News), a consumer receivable asset management and liquidation company, today reported results for the fourth quarter and fiscal year ended September 30, 2007.

Total revenue for the fourth quarter ended September 30, 2007 was $43.1 million, a 41.3% increase compared to total revenue of $30.5 million for the fourth quarter ended September 30, 2006. Finance income for the fourth quarter ended September 30, 2007, was $42.2 million, an increase of 41.6% compared to finance income of $29.8 million for the year ended September 30, 2006.

Total revenue for the year ended September 30, 2007 was $140.8 million, a 38.0% increase compared to total revenue of $102.0 million for the year ended September 30, 2006. Finance income for the year ended September 30, 2007, was $138.4 million, an increase of 37.0% compared to finance income of $101.0 million for the year ended September 30, 2006.

Net income for the fourth quarter ended September 30, 2007, decreased 3.7% to $13.1 million or $0.88 per diluted share, from $13.6 million or $0.93 per diluted share, in the same prior year period. Net income for the year ended September 30, 2007, rose 14.2% to $52.3 million or $3.56 per diluted share, from $45.8 million, or $3.13 per diluted share, in the same prior year period.

The company recorded impairments in the fourth quarter of 2007 of $6.7 million as compared with $1.4 million of impairments in the fourth quarter of 2006. Impairments for the year ended 2007 were $9.1 million as compared to net impairments of $2.2 million for the year ended 2006.

For fiscal 2007, the Company acquired portfolios for approximately $10.9 billion in face value receivables, at a purchase price of $440.9 million, more than double that of fiscal 2006, which amounted to $5.2 billion in face value receivables. For the fourth quarter of fiscal 2007, the Company acquired portfolios for approximately $644.8 million in face value receivables, at a purchase price of approximately $38.6 million.

Fiscal 2007 included $227.6 million in net cash collections from consumer receivables acquired for liquidation, up 42.8% from $159.4 million a year ago. Net cash collections represented by account sales of consumer receivables acquired for liquidation were $54.2 million, slightly lower from $55.0 million for the year ended

September 30, 2006. Collections represented by account sales as a percentage of total collections were 19.2% for fiscal 2007, down from 25.7% in the prior year.

Subsequent to September 30, 2007, the Company purchased portfolios of consumer receivables with a face value of $1.02 billion at cost purchase price of $35.9 million, including one of which included a portfolio from a major financial institution located in a South American country for a purchase price of approximately $8 million.

Stockholders’ equity continues to improve, with the tangible book value rising 26.8% to $16.81 per share at the end of the fiscal year, up from a tangible book value of $13.26 per share the same time last year. Return on average stockholders’ equity for fiscal 2007 was approximately 25.0%.

Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. For additional information, please visit our website at http://www.astafunding.com.

Except for historical information contained herein, the matters set forth in this news release, including any statement about the first quarter of fiscal 2008, are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995.) Although Asta Funding, Inc. 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 Asta Funding, Inc.’s expectations. Factors that could contribute to such differences include those identified in Asta Funding, Inc.’s Form 10-K for the fiscal year ended September 30, 2006, Form 10-Q for the quarter ended June 30, 2007, and those described from time to time in Asta Funding, Inc.’s other filings with the Securities and Exchange Commission, news releases and other communications, including that Asta may not be able to purchase consumer receivable portfolios at favorable prices or on sufficiently favorable terms or at all. Asta Funding, Inc.’s reports with the Securities and Exchange Commission are available free of charge through its website at http://www.astafunding.com.

- Financial Tables to Follow -

Asta Funding, Inc.
Consolidated Statements of Operations Data

	Three Months Ended					Year Ended
	September 30,					September 30,
	2007			2006		2007		2006
Revenues:
Finance income	$	42,217,000		$	29,845,000	$	138,356,000	$	101,024,000
Other income		1,679,000			69,000		2,181,000		405,000
Equity in earnings of venture		(800,000	)		550,000		225,000		550,000
		43,096,000			30,464,000		140,762,000		101,979,000
General and administrative expenses		8,062,000			4,776,000		25,450,000		18,268,000
Interest expense		6,297,000			1,427,000		18,246,000		4,641,000
Impairments		6,685,000			1,570,000		9,097,000		2,245,000
		21,044,000			7,773,000		52,793,000		25,154,000
Income before provision for income taxes		22,052,000			22,691,000		87,969,000		76,825,000
Provision for income taxes		8,972,000			9,121,000		35,703,000		31,060,000
Net income	$	13,080,000		$	13,570,000	$	52,266,000	$	45,765,000
Basic net income per share	$	0.94		$	0.99	$	3.79	$	3.36
Diluted net income per share	$	0.88		$	0.93	$	3.56	$	3.13
Weighted average shares:
Basic		13,907,554			13,628,776		13,807,838		13,637,406
Diluted		14,819,926			14,639,432		14,691,861		14,615,148

Asta Funding, Inc. and subsidiaries

Consolidated Balance Sheet Data

	September 30,
	2007		2006
ASSETS
Cash and cash equivalents	$	4,525,000	$	7,826,000
Restricted cash		5,694,000		—
Consumer receivables acquired for liquidation (at net realizable value)		545,623,000		257,275,000
Due from third party collection agencies and attorneys		4,909,000		3,062,000
Investment in venture		2,040,000		5,965,000
Furniture and equipment (net of accumulated depreciation of $2,048,000 in 2007 and $1,769,000 in 2006)		793,000		1,101,000
Deferred income taxes		12,349,000		7,577,000
Other assets		4,323,000		5,034,000
	$	580,256,000	$	287,840,000
LIABILITIES
Advances under lines of credit	$	326,466,000	$	82,811,000
Other liabilities		7,537,000		4,338,000
Dividends payable		557,000		6,052,000
Income taxes payable		8,161,000		10,377,000
Total liabilities		342,721,000		103,578,000
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value; authorized 5,000,000; Issued — none
Common stock, $.01 par value, authorized 30,000,000 shares, issued and outstanding 13,918,158 shares in 2007 and 13,755,157 in 2006		139,000		138,000
Additional paid-in capital		65,030,000		61,803,000
Retained earnings		172,366,000		122,321,000
Total stockholders’ equity		237,535,000		184,262,000
	$	580,256,000	$	287,840,000