Ok so I have an iPhone 5c right now 16gb. I've ran out of room in the past and as of right now I only have 1gb of free space left. I'm in the process of ordering the iPhone 7 but don't know if I should get the 32gb or 128
If you were having the occasional problem managing 16GB I would suggest going with a 128GB. This way you will not run into that issue in the foreseeable future. I have a 64GB iPhone 6 and have come close on occasions. I have now order a 7 Plus 256GB so I will not have to worry about it. Besides it is only $100 more to go from a 32 to 128. For the peace of mind, $100 is cheap.
If you've been fine with 16 GBs for quite some time then 32GBs should be more than sufficient. Having said that, if you can swing the additional funds for the 128 GB version, do it and not worry about running out of space.