FRANKLIN CREDIT MANAGEMENT CORPORATION AND SUBSIDIARIES
 
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
 
 
                                   FORM 10-QSB
 
 
 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
                              EXCHANGE 
                             ACT OF 1934
                For the quarterly period ended June 30, 1998
   
       [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934 For the transition period from
                         _____________ to _____________
  
                         Commission file number 0-17771
  
  
  
                     FRANKLIN CREDIT MANAGEMENT CORPORATION
        (Exact name of small business issuer as specified in its charter)
  
  
       Delaware                                               75-2243266
 (State or other jurisdiction of incorporation or organization) (I.R.S. 
  Employee identification No.)
          
 
                               Six Harrison Street
                            New York, New York 10013
                                 (212) 925-8745
 (Address of principal executive offices, including zip code, and telephone 
  number, including area code)
 
 
 
 
     Check whether the issuer (1) filed all reports required to be filed by
 Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or
 for such shorter period that the registrant was required to file such reports)
 and (2) has been subject to such filing requirements for the past 90 days. Yes
  X
                                      No .
  
      Check whether the registrant filed all documents and reports required
      to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
    distribution of securities under a plan confirmed by a court. Yes X No .
  
   As of September 3, 1998 the issuer had 5,516,527 of shares of Common Stock,
  par value $0.01 per share, outstanding.
  
  
  <PAGE>
  
  
  
                                  SIGNATURES
  
   In accordance with Section 13 or 15(d) of the Exchange Act, the
  registrant caused this report to be signed on its behalf by the undersigned,
  thereunto duly authorized.
  
                           FRANKLIN CREDIT MANAGEMENT
                                  CORPORATION
  
  
  
                               By: THOMAS J. AXON
                                 Thomas J. Axon
                      President and Chief Executive Officer
  
  
         In accordance  with the Exchange Act, this report has been signed 
   below by the following  persons on behalf of the  registrant and in the
   capacities and on the dates indicated.
  
  Signature                           Title                          Date
  
  THOMAS J. AXON             President, Chief Executive Officer  Nov 24,1998
  Thomas J. Axon             and Director
  (Principal executive officer)
  
  
  FRANK B. EVANS, Jr.        Vice President, Treasurer,          Nov 24,1998
  Frank B. Evans, Jr.        Chief Financial Officer and Director
  Secretary (Principal financial and accounting officer)
 
   
  JOSEPH CAIAZZO             Vice President, Chief Operating     Nov 24,1998
  Joseph Caiazzo             Officer and Director


  Financial data Schedule was ommitted from the original filing of the 10Q.