Can't say it works for me in iOS 7...
I still have micro cuts on my Nokia BH-505 and Jabra Halo 2 BT headsets... especially when I am outside and especially when I cross a road (traffic signals seem to "jam" the BT signal in some way).
I have removed both headsets from the BT menu and added (paired) them again, but still have the micro cuts and/or stopping music.
What to do? PLEASE HELP!
Have you tried to reset network settings or a second more dramatic reset all settings?
In my experience, the first might help (reset network settings), but the second (reset all settings) definitely does help, not only with Bluetooth, but with other settings too in the phone.
Just make sure you take 5 minutes to setup options back the way you want.