Can my bike be recovered from the rust monster?
Agree with wdypdx22 that your frame is likely ok.  (otherwise you might be in for a lot more work)

I'd suggest taking a crack at cleaning up the drivetrain (that's the chain, the chainrings and cogs, aka gear disc things) yourself before taking it into the shop.  It's a simple job and doesn't require expensive tools.  Basically you'll want to scrub the chain &amp; gears with degreaser, rinse, let dry and then re-apply chain lube.

I'd explain it in more detail, but others have done a better job with these answers:


What to use to clean your chain (and cogs)?
How can I clean sand off my bike chain?


I'm less familiar with disc brakes, but if the rust is on the braking surface, try using some very fine sandpaper or steel wool.

Since it's only been a year, you should be able to do a decent clean up.  If, despite your best efforts, there's still lots of rust left or the bike doesn't feel right then your local bike shop should be able to fix it.  Plan on a tune up charge at minimum, or some new components in the worst case.  Either way it will be cheaper than buying a new bike.  (I'd recommend getting the tune-up done anyway in case there are other problems you've missed.)