Unable to upload image

Hello,

I am unable to upload images. I have content type with image field. When I add the image, blank image is being attach.

https://drive.google.com/file/d/0B7xIEuVi005yNENOLUM2YnpIeTA/view?usp=sh…

After I click save, I get error “website encountered an error. Try again..”

https://drive.google.com/file/d/0B7xIEuVi005ydnFBUVJmY2hQRFk/view?usp=sh…

I can edit any node and update other fields and I dont get the error. I get this error only when I try to upload image. I cleared cache and I still have this issue.

I also disabled image caption module. That did not fix the problem.

I checked status report also. I did not see any image warnings there.

Please advise.

Drupal version: 


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