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"Let's say someone steals something from you, let's say your statue of the Blessed Virgin Mary that is on your front lawn, (just trying to lighten things up). A short time later the thief feels remorse, he returns to your home, admits his crime and begs your forgiveness."

Let's say the thief DESTROYED the statue!

Because that is what happens with sin. How are you going to pay God back for all the minutes, hours and days you have robbed Him of His glory and the service and love He was due??? YOU CAN'T!

God's forgiveness requires blood. The reason we are freely forgiven is because someone else has already paid in blood.

Hebrews 9:22
"Without shedding of blood is no remission."

If you pay for your sins you can not consider your justification to be freely given.

Paul: "Being justified freely by his grace through the redemption that is in Christ Jesus:" Rom 3

If you pay for your sins you can not consider your justification to be freely given.

Wrong, blatantly wrong. If you pay for your justification, you cannot consider your justification to be freely given. But not all expiation for sins is "payment for justification," particularly not if the persons in question are already justified.

Everyone who sins pays a penalty for those sins in some way or another, here or hereafter. There are no exceptions.