Item 8.01. Other Events

On March 2, 2007 Palisades Acquisition XVI, LLC ("Palisades XVI"), an affiliate of Asta Funding, Inc. (the "Company"), entered into a Receivables Financing Agreement, as amended on July 1, 2007, December 27, 2007 and May 19, 2008 (as amended the "Agreement"), with a major financial institution, pursuant to which Palisades XVI borrowed approximately $227 million in order to pay a portion of the purchase price for a portfolio of approximately $6.9 billion in face value receivables. On December 1, 2008, as a result of the actual collections being lower than the minimum collection rates required under the Agreement for the month ended November 30, 2008, a termination event occurred under the Agreement. In order to resolve this issue, the parties to the Agreement executed a Waiver (the "Waiver") dated as of December 1, 2008. The Waiver provides that, among other things, the termination event will be waived until December 22, 2008.

On December 22, 2008, the Company received an extension of this Waiver until December 31, 2008.

The description of the Waivers set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Waivers, a copy of which will be filed as an exhibit to the Company's Annual Report on Form 10-K for fiscal year ended September 30, 2008.

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