Jacob explains that a natural division between the unrepentant and the righteous will occur even before the formal judgment. By using “we,” Jacob includes himself with the audience among those that will “have a perfect knowledge of all our guilt.” This inclusion is only a rhetorical device, since Jacob surely knew he would be in the second category—the righteous who “shall have a perfect knowledge of their enjoyment.”
This verse establishes the continuation and perfection of knowledge after death. Human consciousness and self-understanding will continue past death; but out of the body, our knowledge will be perfect (v. 13). Perfect self-knowledge reveals us to ourselves as God sees us, making clear our position relative to God. We will see ourselves as either full of guilt or “clothed with purity.”