Abstract: A hanging folder suspension system for use with different sizes of file cabinets and different sizes of hanging folders and which is suitable for compact storage. The system includes a frame which is made of a pair of frame elements which have a column member and at least one horizontal bracket member and is integrally made of reinforced plastic. The frame elements can be locked together in a laterally adjustable manner to accommodate different size folders. A pair of multi-component rails which are adjustable to the length of the file cabinet are provided and engage rail positioning channels in the frame elements to secure the rails into the frame and form an upright rigid structure in a working position. The rails include at least two rail elements which are joined by a connecting bracket. When disassembled, the frame and rail elements fit into a compact storage box suitable for handling by standard processing facilities.