Re: Forgiven But Still Condemned. Christ died once for all and the justice of God was satisfied on the cross ~ for all mankind. So technically, yes, the debt has been paid, but as you correctly pointed out, unless we individually accept Christ’s propitiation, it remains unclaimed. From God’s point of view, the sin debt has been paid. It remains for each individual to make it effective.
I think of it as a heavenly ledger ~ both sides of the books are balanced as far as God is concerned. In eternity, there will be no unpaid sin debt for God to have to ignore. The ‘books’ will balance, as His righteousness and justice have been satisfied.
I like your ledger concept. If I owe a debt and let you pay it for me, my creditor will enter the payment against the charge on my account and the ledger will balance. The debt is paid. But if I refuse your offer the debt will remain on the books for me to pay. According to your scenario, the creditor who accepted your payment on my behalf could continue to take action against me as if the debt had not been paid. An honest creditor could not accept payment and then continue to pursue me. He would have no legal basis for doing so. Just so, if God accepted His son’s death as payment for everyone’s sins, He would have no legal basis for sending those who refused to accept it to Hell.
This is also true in the overall sense. If God has accepted His Son’s death as payment for everyone’s sins, He would have no legal basis for bringing the end times judgments upon the Earth. But Isaiah 26:20-21 tells us the purpose of God’s wrath is to punish the people of Earth for their sins. 2 Thes. 2:9-12 confirms this. In the end times people will perish because they refused to believe the truth and be saved. If God counted everyone’s sins as paid he would be subjecting these people to double jeopardy.
Don’t get me wrong. Jesus came to take away the sin of the world (John 1:29). But only those who accept this by faith will have their sins removed. For everyone else their debt of sin remains because they rejected the Lord’s offer to pay it for them.