basically, "choppin' it up" means just shooting the breeze with friends, i.e. conversing and just talking about whatever comes to mind. Chopping it up can refer to analyzing a situation, such as breaking it down and explaining it.
Choppin' it up is usually experienced best while having a cold beer in hand. You can chop it up anywhere, in the car, on a plane, in the restroom, or even via text messaging.
"I called my boy and we chopped it up for awhile about last night"
"We didn't have a lot of work to do today, so we just sat around choppin' it up"
person 1: "So, what do you think about leaving Thursday night instead of Friday morning?"
person 2: "It's definitely on the table, but we might have to chop it up first."
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