I would say to this that the fact that we live unto righteousness has to do with the fact that we have repented of sinning; and that sinning is to transgress the law;
Regardless of the penalties that are required by the law for sins committed, I believe that the law that is written on the hearts and minds of New Covenant believers is basically personal to the believer apart from penalties. Because the believer in Christ, has the love of the Lord shed abroad in his heart; and therefore is obedient to the spirit of the law and therefore will not exact any penalties.
The penalties also are null and void because the believer is not under the law (Romans 6:14), is dead to the law (Romans 7:4, Galatians 2:19) and is delivered from the law (Romans 7:6) as concerning condemnation.
All that is left of the law of the Lord in the believer's life, therefore, is the moral tenets that he is obedient to because the love of the Lord has been shed abroad in his heart. These laws are written on his heart and mind inasmuch as he has been filled with the love of Jesus Christ and this love is the fulfilling of the law.
It remains that for the sinner, the law of God gives him the knowledge of sin (Romans 3:20); it shows him that he is a sinner in need of the Saviour.
For the one who is born of God, he doth not commit sin, for his seed remaineth in hin; and he cannot sin, because he is born of God (1 John 3:9).
Therefore if the law pinpoints of you the fact that you are a sinner, it should be clear to you that you are not born of God.
But of course this is referring to you only if you are consistently walking in the direction of sin. In such a case, the fact that you consistently violate the law of the Lord should indicate to you that you are not born again (I am not saying specifically you,
@Pilgrimshope). If you are consistently violating the law of God it is a sign to you that you have not yet been redeemed from all iniquity (Titus 2:14). If you violate it even once it indicates that.
So, I believe that righteousness is imputed to the man who lays hold of the promises of God and does not waver in faith concerning them (Romans 4:20-22).
Such promises that I would mention are:
1 Thessalonians 5:23-24 (kjv, Hebrews 10:14 (kjv), 1 John 3:9 (kjv);
1 John 3:7, 1 John 3:3, 1 John 2:6;
1 John 3:6, 1 John 2:17;
Jude 1:24, 2 Peter 1:10, 1 John 2:10.
These are promises concerning being sanctified wholly.
Therefore, if you believe in these promises and are believing in the Lord to accomplish them in your life, you are indeed justified by faith even if He has not yet manifested the results of these promises in your life.
If you believe that He is able to sanctify you wholly and are also asking, seeking, and knocking for Him to do that in you, then He sees the finished product rather than what you look like now in your Christian walk. Because such an attitude will apprehend the reality of these promises being fulfilled in you life in due season; and therefore, if you are trusting Him to do these things in you, you would be taken straight to heaven if you were to die before those promises are brought to fruition in your life. The work will be completed when you see Him if you desire it.
And of course, it is also true that if you have this hope in Him, you purify yourself even as He is pure (1 John 3:2-3).
And if you desire it, it is only a matter of time before you receive it in this life (provided you don't pass into the next life before it can be accomplished); for if you delight yourself in the LORD, He will give you the desires of your heart (Psalms 37:4).