What do Hank and Jacob decide to do about their situation in the end of Chapter Six? Who suggests a different plan?

Hank and Jacob talk briefly about their situation and decide that they're going to turn themselves in, claiming self-defense. Hank calls Sarah first, and she says that he can't call the police. She tells him to go get Sonny, Lou's landlord, and to stage the scene as if Lou had caught Sonny and Nancy in bed together, killing them both and turning the gun on Jacob who shot in self-defense.