This sounds like a corrupt database issue, but others will know better. When my Kobo freezes up, which has happened after a bad WiFi upgrade or when I've been tinkering under the hood, I'll do one of the following things. They're listed from least destructive to most destructive. (By destructive, I mean wiping your settings and libraries.):
1. Repair your account: Go to (More>)Settings>Device Information and tap on "Repair" near the bottom on the right. I do this whenever book rentals have gotten out of sync between my Kobo and Overdrive.
2. Log out: Go to (More>)Settings>Accounts and tap on "Sign out". This will erase your current session, but, unless something has gone horribly wrong, will often leave side-loaded content intact. Just sign back into your Kobo account, and set your Overdrive, Pocket, etc. accounts back up.
3. Factory reset: This is going nuclear, but sometimes nothing short of this will fix the problem. Nuking everything from space just to be sure is enabling developer mode and doing a factory reset in there. It wipes your Kobo to its original firmware. (Type "devmodeon" and tap on "Go" in the Kobo's search page if you want to play around with it. You'll find it in Settings>Device Information)
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