Restoring Lawful Status
From Stormhalter
A confessor ghost can be found in each Township.
They will require a silver dagger to purify you of your sins.
Silver daggers may be found off of Gargoyles in various places.
Once you have obtained one, take it to the ghost, put it at his feet and say, "Ghost, forgive me", to be absolved of your sins.
Congrats, you are lawful again!