ABRAHAM'S BOSOM: The enigma of the righteous being in Sheol (Hades) along with the wicked, was tentatively resolved during the intertestamental period by compartmentalizing Sheol into two distinct regions. In Jesus' day, the part of Hades where the righteous were detained was commonly referred to by the Pharisees as Abraham's Bosom. This was a place of rest and banqueting where the souls of the righteous enjoyed "intimate fellowship with the father of the race (Abraham), who is still alive and blessed in death."
PLACE OF TORMENT: The idea of "torment" being associated with Hades was also clearly a part of the Pharisaic tradition of Jesus' day. This traditional belief which similarly developed during the intertestamental period is attested to and quite graphically elaborated on in much of the the religious folklore prevalent at the time.
A point worthy of note here, is that when Jesus used the terms "Abraham's Bosom", and "Torment" in reference to Hades, he was employing terms and concepts not rooted in scripture, but in rabbinical tradition. He was using terms fully comprehended by the Pharisees and clearly endorsed by their teachings about the afterlife. And equally important, Abraham's Bosom, and Torment were terms the Pharisees used regularly to justify their total neglect of the poor.