Note: Your character stats & inventory are saved local only. Suppose you were playing on the server I run. If you wipe your computer then reconnect, you'll start "naked" with no skills, but everything NOT on your character will be there just fine, as if you connected with a new character.

Along that same line, if I wiped my server or you connected with your advanced character on another server (or you cheated advanced gear and stats on a local game), you'll bring all that in while the server you connect to will not care at all how you got your stuff: you just go right on in.