Sir this is a wendys

Hell is for those who commit evil acts and do not repent.

But he loves all of his creations equally and are all made in his image(according to the bible) so then his image should go to hell

That is because the world was broken. He gave us free will so that we would not be slaves. But because of this, we are able to make mistakes. Adam and Eve ate the fruit because Satan convinced them. See God gives his creations free will which means imperfections are bound to happen.

People say "If God loves us then why do bad things happen?"

It's because we are imperfect. He gave us freedom. Imperfection in his eyes was a small price to pay to make his creations free.

Still he loves all of us there shouldn’t be hell

You are wrong. God does love us. But no matter how much you love a person if they commit arson, Murder, and rape children and aren't even sorry you are NOT going to reward them with eternal life. No matter how much he loves you it is still his job to enforce what is right.