The 255 will work fine on a 7" rim, but the car will most likely feel squirmy from the bulged side wall. Ideally you want to keep the tire tread width as close to the rim width as possible.
I've run both 255/70/15s, and 255/50/15 on 7" rims on one of my wagons before and liked them ok, but 235/70/15s feel better IMO, but it depends on the look you are going for.
Mike