When we die our bodies turn to dust (or ash), but our souls, which do not die or sleep, go immediately to the place of their eternal habitation; either to behold the face of God in heaven or to suffer punishment in hell.
Both of these eternal destinies are set when we die, we having rejected or received Christ by faith, but will take on a greater dimension on the last day, the day of judgment of which the Bible clearly speaks.
On that day God will raise and recompose the bodies of all who have ever lived, rejoin them with their immortal souls, publically pronounce a perfectly just and righteous judgment, and send each one, body and soul, to their eternal destiny, heaven or hell.