Praise be to Allah.
The papers which have Allah’s name can be put to good use by giving them to people who can benefit from them, or placing them in a library for that purpose.
If that is not possible, or the papers are not suitable for that purpose, then they may be destroyed by burning them, burying them, or shredding them so that the verses of the Quran and the name of Allah disappear.
If a part of the word remains there is no harm in that. There are shredding machines that cut paper into long, thin strips, which may be used for this purpose.
For more details, please refer to the following answers: 39376 , 21511 , 158570 , and 4258 .
May Allah help us and you to do all that is good.
And Allah knows best.
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