A hanging pocket folder for use with support rails is disclosed. The disclosure includes a method and structure for preventing the side walls thereof from being damaged when the folder is withdrawn from a rail support system. Prior art systems did not recognize the problem of snagging sidewalls with withdrawal. The present disclosure provides for side walls which preferably exceed the height of the lower edge of the support rails and thus never snag on withdrawal despite the fact that the accordion sidewall may easily be deformed from use. A further embodiment discloses an elastic sidewall and integral tabs.