I feel I have lost peace in my heart and mind – I have started reciting Quran and tahajjud but things are not getting better. I feel suffocated & frustrated. Is there any Amaal that can change impossible situations to possible? Why does it happen?

I recommend salaat alayl. Wake up just to pray to God. If you do that you will rebuild the spirituality.

There are several reasons:

1- We have shortcomings with God.
2- We are not asking correctly
3- We are asking for the wrong thing.
4- Our dua is accepted, just not at the time we want.