No, you don't. That IS how I had originally written it, but I changed it based on forum feedback because indeed that could be very annoying.What I thought was that you lose a blade automatically when it breaks.
So I replaced the "Badly Worn" quality with "Broken". When a blade goes from "Worn" to "Broken", it is automatically de-equipped for you.
Depending on the BLADEDAMAGE_USEOTHERBLADE value in InternalSettings.h, you will then be left with your fists OR you automatically equip another blade from your inventory.
Default setting is OFF, so you have to respond quickly when your blade breaks. Press the Quick-Equip key in mid-fight when this happens!
The "Broken" blade remains in your inventory and can be repaired at the blacksmiths.