There has to be some kind of judgment to sort it all out. For the Father judges no one, but has committed all judgment to the Son. This is why the doctrines tells us that there is judgment from good and judgment from truth. People who have faith are judged from good, but those who do not have it are judged from truth. When people die, their spirit enters the World of Spirits, leaving the physical body behind in the natural world, and with the body is left all the deeds of the body.
Every spirit starts over with a clean record.
Gradually, once the spirit has adjusted to the fact of spiritual life, the inhibitions that have active throughout life in the world are removed. The spirit no longer cares what others may think, or fears punishment by the law, but does exactly what he wants to do when he wants to do it. Those who have consciously and deliberately tried to do what is right for the Lord's sake, continue to do what is good. While they may require some correction and amendment of false ideas, these, after a struggle known as a vastation, are accepted willingly and with delight. It's like having a class of eager, bright students who are genuinely interested in learning the subject and putting it to use in their lives.