There is nothing wrong with recycling these papers, so long as they are not exposed to any mishandling before the writing is erased from them.
And Allah knows best.
Question: 4258
Is it allowed to recycle paper which has the name of Allah on it or even if it says God.
Praise be to Allah, and blessings and peace be upon the Messenger of Allah. To proceed:
There is nothing wrong with recycling these papers, so long as they are not exposed to any mishandling before the writing is erased from them.
And Allah knows best.
Source:
Sheikh Muhammed Salih Al-Munajjid
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