Your mind can be thought of as a time machine, instantly teleporting you back in time to the past, or into the future. When you are anywhere in your head besides NOW, you are caught in the illusion of time.
Attachments to people, places, and things can cause you to "time travel" in your mind. This attachment causes you to 'think", taking you out of the only time, which is NOW.
The "anniversary" of my mother's passing was a few days ago. She left this world on March 2, 2005. Because the calendar (time) said it was March 2, my mind fell into the "trap" of re-living the day that had happened several years earlier. Being aware of this as it was happening, I was able to re-member the hurt and pain of that time and transform these emotions into healing.
They say "time heals" (whoever they are) and it does get easier with each passing year. As long as I re-live and "think" about the memories of that day, I am traveling back in time. I am bound by the emotions and feelings of that time whenever I visit there in my mind.
Past events can have a lasting effect on our emotional bodies when we hold attachments to them. There is a process that must occur in order to be free from the "trap." Healing happens through awareness, feeling, processing, acceptance, and releasing. So yes, time does heal. When we go back there and complete the clearing process, we are no longer bound by our past. We are released from the bondages of so called time. Here we exist only NOW.