During the public ministry of Christ when He is sharing various truths and parables. In this instance, Jesus is sharing information about what happens after death and the contrast between the “rich” that live carefree and selfishly (vs 19) and the “poor” (Lazarus in this case) that must beg in this life (vss 20-21). The other important difference is that the latter listened to “Moses and the prophets” (vs 29), while the former did not.
As a result, the one that in their lifetime received their “good things” (vs 25) – their reward – and suffered after death while Lazarus’ reward was after death.
Hades is where both men went after death. For the rich man, it’s described as a place of “torment” (vs 23) and “anguish” (vs 24) where “a great chasm has been fixed, in order that those who would pass from here to you may not be able, and none may cross from there to us” (vs 26). Meanwhile, Lazarus is being comforted in the bosom of Abraham (vss 22,23).