Bathroom Paint Help!
Yeah thats a mess, definitely needs to be re taped. It looks pretty old, I would avoid sanding as much as possible because there could be a layer of lead based paint there. A chemical strip would be preffered, definitely see about hiring that job out.
Another option would be to just rip the drywall out and start over. It could end up being cheaper/easier in the end. Also, if its a moisture issue, that can be fixed with the drywall off and any mold/mildew removed ( chances are behind the wall is mold )