What To Do When One No Longer Needs Paper Upon Which Allâh's Name Is Written
Question :
In newspapers, letters, journals, and magazines we often. find Allah's name or verses of the Qur'an written. When we are finished reading them, what should we do? Should we burn them?
Answer:
When you are finished with paper upon which Allah's Name or a verse of the Qur'an is written, you must either store it, burn it, or bury it under pure soil, preventing Allah's name or verses of the Qur'an from being debased. Therefore you must not throw them away into the garbage or in the street, nor should you use such paper as a tablecloth for your meal, or any other behavior that would amount to debasing it in any way whatsoever.
And with Allah is the facilitation to do what is right.
Source:
Ibn Baz
Fatawa Islamiyah, Vol. 7 Page 44