Item 1.01 Entry into a Material Definitive Agreement
On December 4, 2007, Asta Funding, Inc. (the "Company") and certain of its subsidiaries entered into the Sixth Amendment to the Fourth Amended and Restated Loan Agreement (the "Sixth Amendment") with a consortium of banks. The Sixth Amendment modifies the Fourth Amended and Restated Loan Agreement by providing for a temporary increase in the revolving loan commitment from $175,000,000 to $185,000,000. The temporary increase amount of $10,000,000 (the "Temporary Line Increase Amount") is required to be reduced to zero by February 29, 2008. In the event the Temporary Line Increase Amount is not fully reduced to zero by February 29, 2008, the revolving loan commitment shall nevertheless be reduced to $175,000,000 and the then outstanding portion of the Temporary Line Increase Amount is required to be reduced over a six month period in substantially equal monthly amounts.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth above in Item 1.01 of this current report on Form 8-K regarding the Credit Facility is hereby incorporated into this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits

Exhibit
No. Description
10.1 Sixth Amendment to the Fourth Amended and Restated Revolving Note

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