I had the same issue and got it solved by sending 0.001 btc to my counterwallet.
The reason why your 0.0007 btc do not work is because it consists of maybe 14 tiny 0.00005340 btc which is called dust. If want to use these 14 tiny btc you also need 14 times the fee cause all adds up. The dust is created with each counterwallet transaction because it rides on the bitcoin network which needs a btc dust as minimum btc value.
Still counterwallet could give a hint that the current balance has too much dust and that is why the balance cannot be used for transaction fee.
Here is a solution how to redeem your 0.0007 btc from dust to usefull btc.
Maybe counterwallet could have such a dust redeem feature implemented.
Another option is to send some btc to counterwallet and then send all btc to another bitcoin address like electrum with low fee and then send all back with low fee. This consolidates all fragmented btc dust into one continues btc value. And so everything can be used again.
Or is it even possible to send everything from counterwallet to same counterwallet?