Recently I was playing in a home tournament and it happened that the big blind went all in and was knocked out. An argument arose about who should be the blinds and what did they owe. Everypoker site I play on just moves the button and the two people to the left are the blinds, small then big, giving one person a round without a big blind. Up until this point I never read any text to disprove this. They argued the player after big blind still owed the big blind, which was vigourously debated. I found only a few sites who supported their side. I found many supporting my side. If he was correct then there would be one hand with only his big blind and no small blind. Then the subsequent hand he would have to pay the small giving the button two straight deals and an unfair advantage of acting last twice in a row in a no-limit tournament. Can somebody please help me out?

Thanks

If the Big Blind is eliminated, the small blind becomes the dealer and the person who was UTG last hand, posts a big blind and there is no small blind this round.

Then the next hand, he would be the dealer, and he would post a small blind, and then the other blinds would post as usual. So there would be two Small Blinds and one Big Blind in the pot. The button still moves, but in this case the button also has to post a small blind.

Why isn't it played as such on the internet then. Also I have played in about 10-15 live tournaments and it was never the case there either. Can someone give me a website of some validity to verify this. Or is this a custom that is sometimes practiced depending on the house.

The internet often just uses a moving button, which can be done in some live tourneys depending on the rules. In that situation, the button basically just moves around the table, not paying any attention to who was last in the big blind.