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Previously I had Ubuntu installed on my pc along with windows 10 and windows 7 and was using windows 7 boot manager instead of grub. But then after an update of windows 10 my Ubuntu crashed and refuses to load. Since i think this might have been caused by the Windows 10 interference I've decided to boot Ubuntu from a USB drive. Since I am a beginner kindly explain the detailed procedure in creating the live image and clarify whether Ubuntu be able to access/modify contents of my hard drive.

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Yes, you can install ubuntu in a usb, with a persistence option, this mean that you can store information in the SO, that is in the usb....

This is from windows...
Check this link: Create a Persistent Bootable Ubuntu USB Flash Drive
A video: How To Create A Persistent Bootable Ubuntu 14.04.1 LTS USB Flash Drive [2014]

This is from Linux
link 1: Creating a bootable Ubuntu USB flash drive from terminal
link 2: How to create a bootable USB stick on Ubuntu