We explore the way different loop quantization prescriptions affect the formation of trapped surfaces in the gravitational collapse of a homogeneous dust cloud, with a particular emphasis on the so called µ o scheme in which loop quantum cosmology was initially formulated. Its undesirable features in cosmological models led to the so-called improved dynamics or the μ scheme. While the jury is still out on the right scheme for black hole spacetimes, we show that as far as the black hole formation is concerned the µ o scheme has another, so far unknown, serious problem. We find that in the µ o scheme no trapped surfaces would form for a non-singular collapse of a homogeneous dust cloud in the marginally bound case unless the minimum non-zero area of the loops over which holonomies are computed or the Barbero-Immirzi parameter decreases almost four times from its standard value. It turns out that the trapped surfaces in the µ o scheme for the marginally bound case are also forbidden for an arbitrary matter content as long as the collapsing interior is isometric to a spatially flat Friedmann-Lemaître-Robertson-Walker (FLRW) spacetime. We find that in contrast to the situation in the µ o scheme, black holes can form in the μ scheme, and also other lattice refinements with a mass gap determined by quantum geometry.