What does the Bible mean by being justified?

Justification is a legal term signifying that a person is declared righteous in the sight of God. In the biblical context, it involves a two-fold process: the forgiveness of sins and the imputation of Christ's righteousness. As stated in Romans 5:1, 'Therefore being justified by faith, we have peace with God through our Lord Jesus Christ.' This declaration of righteousness is not based on our works but on faith in Christ alone, who fulfilled the law and bore the penalty for our sins. Thus, justification is central to the believer’s standing before God.