Hi there,
A detailed medical and psychiatric history is always needed for every patient.In addition,a detailed mental status examination is also recommended for every patient to make a diagnosis and the management of the case accordingly.
As per your description and query, yes in Depression sleep impairment can happen.And Depression can happen to any person.Sometimes that happens in response to a traumatic/stress like situation or can occur even without that.
Medications and psychological interventions are likely to yield good results.
Next Steps
Be positive in your thoughts.
Get the advice from a mental health professional.
Early intervention is always better in every case.