There is not much said about demons in the Bible except that they exist. It is generally believed that they are the fallen angels, but my study of 2 Pet. 2:4 and Jude 1:6 tells me that the fallen angels are being held in Tartarus. Now, if Tartarus and Hades are two separate places, are we to believe that the fallen angels are, in fact, being held for the day of judgment? And if they are, who are the demons? -- Andy Harmon (Morgantown)
Many Christians and Jews believe demons are fallen angels. This view has much to commend it, though I am not sure it is so easy to prove. It sounds right, but as you point out--if all the angels are in prison--leaves you wondering whether there is a difference between demons and fallen angels. After all, their fall presumably occurred long ago, so if they were incarcerated, who was out and about in the early N.T. times, necessitating exorcisms (as we see in the four gospels and Acts, though not later)? Or maybe they roamed free from their fall until the ministry of Jesus. But if so, why is there not a single report of demonic possession in the entire Old Testament?
As for the underworld, in my understanding, Tartarus is part of Hades (the unseen realm of the dead, or Sheol in the Old Testament). The other part of Hades, to which believers go when they die, is Paradise. (I have written on this issue extensively, so I will not repeat my reasoning here.)
So to answer your question, Yes, fallen angels are being held for the day of judgment--and that of course leaves the other question open: Are there demons roaming about today, or did the ministry of Jesus and the apostles "mop" them all up and confine them in chains until the judgment day? As to the answer, I am open, and don't feel I can be dogmatic, based on my limited experience. (I would warn you, though, I am highly skeptical about most of the claims I have heard!) I normally like to give answers to the questions people send me, not just send them questions in return! But on this matter, this is all I can (or am willing) to do at this time. (Note: You may find a little more in my book The Spirit.)
In the meantime--watch out!
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