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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001005477-06-003948.txt : 20060807
<SEC-HEADER>0001005477-06-003948.hdr.sgml : 20060807
<ACCEPTANCE-DATETIME>20060807162314
ACCESSION NUMBER:		0001005477-06-003948
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060804
FILED AS OF DATE:		20060807
DATE AS OF CHANGE:		20060807

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ASTA FUNDING INC
		CENTRAL INDEX KEY:			0001001258
		STANDARD INDUSTRIAL CLASSIFICATION:	SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153]
		IRS NUMBER:				223388607
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		210 SYLVAN AVE
		CITY:			ENGLEWOOD CLIFFS
		STATE:			NJ
		ZIP:			07632
		BUSINESS PHONE:		2015675648

	MAIL ADDRESS:	
		STREET 1:		210 SYLVAN AVE
		CITY:			ENGLEWOOD CLIFFS
		STATE:			NJ
		ZIP:			07632

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			STERN ARTHUR
		CENTRAL INDEX KEY:			0001046400

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26906
		FILM NUMBER:		061009277

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		2015675648

	MAIL ADDRESS:	
		STREET 1:		210 SYLVAN AVENUE
		CITY:			ENGLEWOOD CLIFFS
		STATE:			NJ
		ZIP:			07632
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-08-04</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001001258</issuerCik>
        <issuerName>ASTA FUNDING INC</issuerName>
        <issuerTradingSymbol>ASFI</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001046400</rptOwnerCik>
            <rptOwnerName>STERN ARTHUR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O ASTA FUNDING, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>210 SYLVAN AVENUE</rptOwnerStreet2>
            <rptOwnerCity>ENGLEWOOD CLIFFS</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07632</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chairman and Exec. VP</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, par value $.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2006-08-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>60000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>2.25</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>269334</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>2.25</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-08-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>60000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2006-08-06</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $.01 per share</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>60000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>286000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Mr. Stern indirectly owns (a) 214,542 shares of Common Stock, which represents Mr. Stern's pecuniary interest in shares held by Asta Group, Incorporated, (b) 349,460 shares of Common Stock, which represents Mr. Stern's pecuniary interest in shares held by Stern Family Investors LLC, and (c) 1,278 shares of Common Stock, which represents Mr. Stern's pecuniary interest in shares held by GMS Family Investors LLC, all of which shares are not included in Table I.  Mr. Stern does not have voting or investment power with respect to any of the shares held by either LLC and disclaims beneficial ownership of the shares owned by the LLCs.</footnote>
        <footnote id="F2">The options were granted on 08/06/96 and vested in three equal annual installments beginning on 08/06/97.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Alan Wovsaniker, Esq., Attorney-In-Fact</signatureName>
        <signatureDate>2006-08-07</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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