Conventional thresholding algorithms have had limited success with degraded document images. Recently, partial differential equations (PDEs) have been applied with good results. However, these are usually tailored to handle relatively few specific distortions. In this study, we combine an edge detection term with a linear binarization source term in a PDE formulation. Additionally, a new proposed diffusivity function further amplifies desired edges. It also suppresses undesired edges that comprise bleed-through effects. Furthermore, we develop the fractional variant of the proposed scheme, which further improves results and provides more flexibility. Moreover, nonlinear color spaces are utilized to improve binarization results for images with color distortion. The proposed scheme removes document image degradation such as bleed-through, stains, smudges, etc., and also restores faded text in the images. Experimental subjective and objective results show consistently superior performance of the proposed approach compared to the state-of-the-art PDE-based models.