How to reset a phone I forgot the password and Apple ID of?

Refer to How to remove Activation Lock - Apple Support There are only two ways to remove a lock:

#1 If you have the necessary information, you or the signed in owner can do this yourself by simply signing in with the owner account and password information and doing as instructed in the above article. If you use this method and this is a new device to you, follow unlocking by doing as outlined in What to do before you sell, give away, or trade in your iPhone or iPad - Apple Support or What to do before you sell, give away, trade in, or recycle your Mac - Apple Support . If you do not have the required information then you can try method 2 —>

#2 Apple can completely reset a device if a person can provide sufficient evidence of valid ownership. Read the requirements and steps for an Activation Lock support request at: https://al-support.apple.com/#/additional-support and links at the bottom right for the type of service requested. Apple says they “may” require "proof of purchase documentation” and that you need “proof of ownership documentation”, but does not detail what currently constitutes proof other than it “must include the product serial number, IMEI or MEID.” User reports on this community and chat with Apple indicate that typically Apple will absolutely require, and ONLY accept, an original receipt issued by Apple or an Apple Authorized Reseller. Presumably this is the only kind Apple can authenticate against fraud since Apple is not involved in third party sales. Apple recommends that you "Keep your receipt after you buy an Apple device" --> Keep your receipt after you buy an Apple device - Apple Support

If anybody tells you that you have to be the “original” owner, they are wrong. In the case of removing the lock with the correct information, it can be anybody who knows the currently signed in account information. In the case of asking Apple to unlock it, as long as you have the original Apple receipt (which may well not have any personally identifying information on it) you are okay. Apple confirmed this in a conversation.

If Apple resets the device this will give you access to the device but won't restore access to the account used to lock it. There is nothing that can be done to expedite an Activation Lock request.

If you cannot get the device unlocked then read this section from the very bottom of Apple Trade In - Apple :

"Does Apple offer recycling?

Yes. Apple Trade In lets you recycle any Apple device (including devices from Apple-owned brands) at any Apple Store and on Apple for free. That includes your batteries and old electronic products as well as free, on-demand packaging recycling for our commercial, education, and institutional customers. When we receive your device, it will be thoroughly inspected to determine if components can be recycled or reused. Whether recycled or reused, all activities relating to the processing of your device will be managed in an environmentally responsible way."

And read these for future gifts/purchases:

The All Too Common SAD Reality of Buying … - Apple Community

If you want to buy a preowned iPhone - Apple Support

Thank you for reaching out. 🤗

According to Apple:

Remove Activation Lock on the device

Follow the onscreen steps to enter the Apple Account and password you used to set up your device or your device passcode. If you don't remember your Apple Account, try to sign in with an email address or phone number that you regularly use for Apple services.

Learn how to find your Apple Account or reset your Apple Account password.

If your device is owned by a business or educational institution, please contact your IT department or manager. 

Remove Activation Lock on the web if a device is offline

For iPhone, you might be able to remove Activation Lock on the web even if your device isn't offline.

1. Go to www.iCloud.com/find.
2. Sign in to your Apple Account.
3. Select the device that you want to remove from iCloud.
4. Click Remove This Device.

Start a support request

If you need help removing Activation Lock and have proof of purchase documentation, you can start an Activation Lock support request.

Thanks again for reaching out. 👍🏼

Take care! 👋🏼😉

Smiliñ 😎 Brian | Community Volunteer