Throwing Away Paper that Has Allah's Name Written on it
Question :
After having read a newspaper in which Allah's Name is written, we usually throw it away in the wastebasket; is this permissible? Also, is it permissible to pray wearing shorts that come up above the knees?
Answer:
It is not allowed to throw away anything upon which is written verses from the Qur'an, Allah's Name, or Hadiths of the Messenger of Allah. It is furthermore not allowed to place any such item in a place where they are debased. Allah's speech is blessed and we must venerate it. Thus a person who is in a state of impurity is not allowed to read the Qur'an. And the Mushaf is not to be touched unless we are in a state of purity and have performed ablution; at least this is the opinion of most scholars. If we don't need such paper, we must either completely burn it or shred it using a machine.
As for a man praying while wearing short pants that do not cover the area between the naval and the knees, that is not allowed unless he is wearing a long garment that covers it.
Source:
Ibn 'Uthaimin
Fatawa Islamiyah, Vol. 8 Page 367