Can you really get your xbox live suspended?

My friend keeps tellin me if u get booted out of halo his xbox file with get suspend or you wont be able to have xbox live anymore. is that true. cause when ever i play halo on my xbox live and get booted (out i got booted out 50 more times then he did) and nothing happened to my file. i never been suspened or had my xbox file delete by microsoft. all what happened to be is keep getting demoted.. but oh well. all i want to know is that true?